Case Study: Staffing CompanyAny company that sells a product or service to another company can benefit from speeding up their cash flow through invoice factoring. When companies have to wait 30, 60 or 90 days for their customers to pay them for work they have completed, this delay can put significant pressure on a business owner’s ability to meet financial obligations.

Whether you need to improve your cash flow to keep up with bills or to expand your business, factoring can be an affordable and fast financial solution. Here are five industries where factoring is an increasingly popular financing method, along with a look at how factoring can benefit those in each industry:

Trucking and Freight Brokerage Companies

Many factoring companies that specialize in the trucking and freight industry offer unique value-added services such as fuel advances, free fuel discount cards, equipment loans, and same-day funding. Not only do trucking companies benefit from improved cash flow, but these customized services, along with factoring companies’ traditional invoice processing and collections services relieve them from many time-consuming administrative tasks.

Government Contractors

Working for the government often means waiting for long payment cycles as your invoices wind their way through many layers of approval and disbursements. When you factor your invoices, you can get cash upfront so that you are able to pay suppliers, employees and those involved in your project deliverables.

Manufacturers

Manufacturing companies find that factoring their accounts receivable saves them money on two fronts. First, they can benefit from their vendors’ early payment discounts (taking off a few percentage points from a bill when they pay in 10 days, rather than 45, for instance). Secondly, they can take advantage of suppliers’ volume discounts when they are able to buy materials or goods in larger quantities bulk. At the same time, they are improving their own credit scores.

Tech Start-ups and IT Companies

Developing software and apps or offering consulting services in the IT industry is an emerging sector. Many times, these companies don’t get paid until an entire project is signed-off by the client. Being able to factor a large portion of the invoice upfront has helped keep many tech start-ups and IT companies afloat.

Staffing Companies

Both temporary and permanent staffing companies choose to factor to close the 30-day, 60-day or even 90-day gap between their employees’ paychecks and their customers’ payments. Some staffing company owners see plenty of cash waiting in their stack of invoices waiting for payments and yet they struggle with with the stress of making their payroll. Staffing companies turn to factoring their invoices to pay their workers on time, every time.

These are just a few of the industries served by Interstate Capital, one of North America’s leading factoring companies for nearly a quarter century. Find out how factoring can benefit your company, too! Get an instant factoring rate quote today.