Staffing factoring can turn your outstanding invoices into cash today and solve the challenges that staffing companies have when juggling revenue and expenses. Since it can take weeks and even months to recruit, train and place temporary staff in positions, staffing companies face a significant delay before they begin receiving a return on their investments of time and resources. In the meantime, those workers need to be paid every week.
In addition, a staffing agency’s work can be stopped short because of the gap in time between sending out invoices for work completed and receiving payments from clients. On top of meeting payroll and payroll taxes, agency owners must keep up with office rent, in-house salaries, advertising, reaching out for new clients, and more.
How can staffing companies meet payroll commitments?
Staffing companies often face cash flow concerns – and that’s where the benefits of factoring come in. Invoice factoring is fast becoming the preferred financing option in the staffing industry, providing agencies with revenue when they need it most. Factoring can fuel a company’s growth by improving cash flow and freeing up the owner’s time for marketing to new clients and broadening the search for qualified employees.
Interstate Capital, one of the largest independently owned factoring companies in North America, has been helping staffing agencies succeed with customized cash flow solutions since 1993. Staffing company owners have found that partnering with Interstate Capital has given them the financial breathing room they need to maintain and grow their business, while meeting their payroll cycle on time, every month.
Factoring for various staffing industries
Interstate Capital factoring professionals provide support for staffing company owners every day, advancing them up to 100% against their invoices. These staffing specialists know both the industry and its business models and have experience with staffing companies in a variety of industries, including:
- Nursing and Medical
- Information Technology (IT)
- Office and Clerical
- Industrial and Manufacturing
- Janitorial and Maintenance
- Hospitality and Food Services
Using the services of a reputable factoring company – with professionals who understand the staffing industry – offers substantial benefits:
- Factoring provides a steady source of working capital.
- Funding can often be set up and approved in a matter of hours.
- Time-saving office services are available, including credit checking, invoice preparation, mailing and collections.
- Factoring is not a loan, so no debt is added to your balance sheet.
- You don’t have to wait 30, 45, or even 60 days to receive payment on your invoices.
- Your application is evaluated on the credit history of your clients, not your credit report or collateral.
For more information about factoring your staffing company’s invoices, get an instant factoring rate quote today.
Staffing agencies factoring
As the owner of a staffing agency, you know that your employees must be paid on time – and you know that’s difficult when your cash flow is disrupted with late payments from clients. Staffing agencies factoring can be a game changer in your business.
Many staffing agency owners find themselves looking for some type of quick business financing, but receiving cash quickly is challenging when you try to follow traditional funding routes. Banks require collateral for loans and credit cards require good credit histories before providing you access to cash. Not all businesses qualify.
Factoring services for staffing agencies is the ideal solution to ensure that you have a positive cash flow all year round. Get an instant factoring rate quote today.
Payroll financing for staffing companies
Factoring companies give you access to immediate funds to cover your payroll whether or not you have a strong credit history or extensive assets. A factoring company will purchase your unpaid invoices and advance your company the invoice amounts in just a few days. You qualify for this advance based on the creditworthiness of your clients, not your payment history. You stay current with payroll, insurance, taxes, and other expenses without incurring debt.
Factoring specialists for staff agencies
Partnering with a factoring company that specializes in staffing agencies factoring can take you a long way toward maintaining smooth cash flow and building your business. Not only do staffing agency specialists understand your business model and challenges, but they may also offer value-added services such as payroll management support that will help you with the day-to-day running of your business.
What makes a good factoring company?
A good staff factoring company is one that offers low factoring rates, quick payments, and personalized service. In today’s changing economy, look for a well-established company with a strong track record through all kinds of business cycles. Ask about any and all fees – some companies may seem to offer low rates, but their “hidden” charges and extra costs can add up fast. Find out if the company is affiliated with leading professional associations such as the International Factoring Association, which sets important ethical standards and practices.
As the owner of a staffing agency, you are juggling many priorities, from recruiting and marketing to client and worker retention. You need to make sure that your workers are paid promptly and that your bills for workers’ compensation, insurance premiums and tax payments are paid on time. When you factor your invoices, you can rest assured that you will be able to make payroll each week and have funds available for your other expenses. No more waiting 30, 45, or even 60 days for clients to pay you on work that has been completed!
Factoring services is the ideal solution for staffing agencies to ensure that you have a positive cash flow all year round. Get an instant factoring rate quote today.
About Interstate Capital
Interstate Capital has funded over 10,000 companies since 1993, making it one of the oldest and largest factoring companies in the alternative funding market. Interstate purchases nearly $1 billion dollars of invoices annually from hundreds of clients in a wide range of industries throughout North America and each client receives individual attention from a dedicated account manager. Get in touch with us so that you can learn more about factoring services designed for staffing firms. Let us customize a program for you.