Staffing invoice finance enables temporary staffing agencies to grow quickly. If your company bills clients for payment, you can benefit from accounts receivable invoice factoring.
Typically temporary agencies that provide staffing service don't get paid for their clients services until after they have filled new job position and the candidate has actually started working. This type of lag in payment can lead to a cash flow crunch.
Temporary Staffing Agencies also have to pay for all their advertising fees to successfully place new job candidates with suitable employers. The staffing company then only gets paid once the candidate has actually worked. The staffing agency covers the costs of their full time work employee recruiters, new job candidates they're trying to place as well as day-to-day expenditures, rent, supplies, training, and advertising. All those cost require a healthy amount of cash flow.
There is no reason to wait to be paid while your clients use your staff to make their businesses more money. Instead let your customers use the factor finance companies money to grow while you get paid for your accounts receivable invoices within 24 hours, of invoicing customers for payment.
Waiting around for a business loan or some other type of traditional financing offered by a local bank may not be feasible or practical. Factoring your invoices will get your money right away to pay each of your employees, cover rent, utilities, advertising, supplies, training and other costs. If your company chooses to use invoice factoring to generate cash, you may be able to secure up to 95% of the invoice value within 24 hours.
Think of how many more candidates you can reach and how many more businesses your staffing company can service if you're not waiting for checks to roll in 20-30 days after you're temporary staff has already been paid and performed work. Factoring is a flexible form of immediate cash flow. Even if you don't need to finance every customer, it is wise to get set up with a factor for the times when you face a cash flow crisis and need access to funds quickly. Getting set up with a factor is easy, all you need to do once signed up is notify them with each employee's time sheets and the invoices you want to sell and within 24 hours you'll have up to 95% of the face value of those invoices deposited into your business account.
If you temp agency has been agonizing over qualifying for a loan from your local lending institution or even been turned away for a loan recently, give factoring a try. To get started finding the best factor finance company in your industry use factor bid. You'll get a few competitive offers from competing factor finance companies that are eager to earn your business and factor your invoices for immediate cash. When factor finance companies know they're competing for your business, you get the most competitive offers right away and ultimately the best deal available .
If you have invoices they're considered assets and can be used to get your temporary staffing agency the cash flow needed to grow your business faster!
Helpful tips for deciding which Factor Finance Company is a good fit for your business:
Many staffing factoring companies provide additional services at no cost to help support your business;
..all as part of their factoring services at no charge to your business. Save money on administrative staff, payroll applications and more. Free up time to focus on growing your business and doing what you want to do. Factor finance your accounts receivable invoices for immediate capital and get your business on track for faster growth and take advantage of a professional finance partner with years of experience in your industry.
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