Staffing agencies, particularly those providing specialize professionals in IT, medical and seasonal labor markets, may find that despite having a lucrative business, they often have cash flow problems.
This is not an issue with the company; it is an issue within the industry. However, according to the United States Bureau of Labor and Statistics there were 2.8 million workers employed by temporary help services in July of 2013, meaning that about 2% of the workforce are temporary workers. In addition, in the same year, employment firms providing temporary workers generated over $109.2 billion dollars in revenue, and that number is anticipated to rise.
The Problem
The problem for any company offering temporary workers is that they have to pay their staff on a regular basis, often every week or bi-weekly. However, they often have significant demands for seasonal workers, as well as issues with invoicing and payment often up to 90 days from the time of invoicing.
This is where factoring for staffing companies can really be of assistance. Accessing the funds through factoring services on those invoices allows you to pay your workers and retain the top employees.
The Advantages
When a business utilizes our options for providing factoring for staffing companies, not only can you pay your workforce, but you also have the ability to advertise, attract new clients, and to recruit the most sought-after employees. In specialized temporary agencies such as those staffing in the medical and IT fields, this level of professionalism and recruitment is critical.
You can use factoring for staffing companies when it is needed, allowing you to adjust for seasonal demands for workers. We provide full services without any minimums to the volume through your account, giving you maximum control over supporting your cash flow throughout the year.
How it Works
Factoring for a staffing company is very simple and a much less complex issue than trying to obtain a bank loan as a business. All you do is complete a simple and short online application, and we will get back to you with approval within 24 hours.
You will then determine which of your accounts receivables you wish to sell, and provide the invoices. We will verify your clients, and then pay you a percentage of the invoice total, which is around 80%. The residual amount we hold until final payment from your customer is received, and then we deduct our pre-set fee and refund the balance.
With factoring for staffing companies, you can have the funds in your account in days, even with your first transaction with our company. This gives you the cash you need for payroll, new hires, or simply operating your business.
