The staffing industry provides a vital source of people across a lot of occupations: nursing and medical, IT, office or clerical, industrial, janitorial and maintenance, security, hospitality and a wide range of professionals. Owners of staffing companies have particular challenges as they juggle revenue and expenses. Like many other businesses, a staffing agency’s work can be stopped short because of the gap in time between sending out invoices and receiving payments from clients.
Staffing companies are often faced with cash flow problems, since it takes time to recruit, train and place temporary staff in positions, before the company can even invoice the client. In the meantime, those workers need to be paid every week. On top of meeting payroll and payroll taxes, staffing company owners must keep up with marketing, advertising, rent, agency employee salaries, and the list goes on.
Invoice factoring is fast becoming the preferred financing option in the staffing industry, providing agencies with revenue when they need it most. It takes quite a bit of time to build up a staffing agency and factoring can help with the growth of a business, by improving cash flow and freeing up the owner’s time for developing new clients and broadening the search for qualified employees.
Using the services of a reputable factoring company – with professionals who understand the staffing industry – has quite a number of benefits:
- Factoring provides a steady source of working capital
- Funding can often be set up and approved in a matter of hours
- Back office services are available, including credit checking, invoice preparation and mailing and collections
- Factoring is not a loan, so debt is not added to the 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
Interstate Capital is a factoring company with experience in the staffing industry
Interstate Capital, one of the largest independently owned factoring companies in North America, has been helping staffing agencies grow with customized cash flow solutions since 1993. Staffing company owners have found that partnering with Interstate Capital has helped them with improving cash flow, reducing costs spent on administrative work and meeting their payroll cycle on time, every month. Interstate Capital factoring professionals who work with staffing company owners every day can advance them up to 100% against staffing invoices of all types.
For more information about factoring choices, get an instant factoring rate quote today.