Staffing companies, regardless of the industry that you’re focused in, is a specialty business that requires a specialty lender. Money is a commodity and is widely available, but that doesn’t mean it’s the right money for your business. With any time of financing it’s important that a business chooses the right lender to work with. More capital available for recruiting effortsĬhoosing the right Staffing Factoring Company.Growth capital to onboard new customers.Accelerating cashflow by collecting invoice payments on day 1Accelerating cashflow by collecting invoice payments on day 1.Cash management during seasonal periods.Available capital for advertising and marketing.Employee retention by always paying payroll on time.Staffing factoring companies are paid back when invoices paid.Īdditional Benefits of Staffing Agency Factoring In addition, there are no monthly payments that have to be paid. This means that when invoices are factored, it is not recorded as debt on your balance sheet. Another benefit is that invoice factoring is an off-balance sheet type of financing, with no amortization. By utilizing payroll funding staffing companies are able to guarantee that all of their employees are paid on time. The most important asset of every staffing company is its employees and without them, it’s hard to operate. Also known as payroll funding, the main benefit for staffing agency factoring companies is employee retention. Invoice factoring for staffing agencies provides a long list of benefits that help with both day to day operations and with business expansion funding. The advanced payments can also help support training, recruiting, and marketing efforts.īenefits of Factoring for Staffing Agencies Factoring for staffing agencies also provides the additional liquidity needed for expenses that are not only tied to payroll. With the accelerated cash flow staffing agencies are able to source and onboard new clients without having to think about having the funding available for payroll. Invoice factoring for staffing companies enables staffing businesses to not only support their current payroll, but to add more employees and continue to expand their businesses. While some have the capability to operate on cashflow alone, others turn to factoring companies for staffing agencies. When customer payment terms are extended it causes staffing companies to need high cash balances to ensure all of their employees are paid on time. Staffing agency factoring companies are constantly faced with the need to support payroll while waiting 30, 60, and sometimes 90 days to be paid. Our team at SMB compass specializes in providing invoice factoring to staffing agencies to help support ongoing working capital needs and business growth. Each of the companies are faced with the challenge of supporting payroll and growing their businesses at the same time. Between temporary staffing companies and permanent placement recruiting firms it’s estimated that there are over 20,000 different companies in the United States. From healthcare and manufacturing, to government contracting and service-based businesses, staffing provides trained employees that fuel economic growth. The staffing industry plays an integral role in the US economy and provides tens of millions of people with employment each year.
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