Giving Staffing Agencies A
Powerful Competitive Edge
you're a start up or a multi-million dollar operation,
receivables factoring provides your staffing agency stable cash flow
for meeting payroll and operating expenses and an optimal business
financing platform for future growth.
Operating a staffing agency is challenging enough without having to
deal with constant cash flow problems. While you are busy signing on
new clients and recruiting quality staff that will meet their
expectations, the last thing you need is the never ending worry about
how you will meet payroll and handle your other expenses.
For many staffing agency owners, cash flow problems are chronic,
representing a continual threat to the survival of the business. This
is particularly true for start-ups or rapidly growing agencies. While
most commercial clients will be more than happy to use your staff, many
will take their time paying their invoices, perhaps as long as 60
think about factoring
until you've read this ...
It could save you many thousands of dollars and a lot of aggravation!
Unfortunately, delaying payments to service vendors is
a tactic some companies are using with increasing frequency to deal
with their own cash flow issues brought about by our tough economy.
In the meantime, your agency is on the hook for salaries, taxes,
benefits and overhead.
Naturally, most agency owners think a business line of credit or bank
loan is the answer. In today’s climate, qualifying for these forms of
traditional business financing is very difficult, especially staffing
firms that have no hard collateral. Bank financing is now generally
available only to agencies with a solid performance record, a seasoned
management team, and at least some collateral.
Unless you manage to get external funding, your staffing agency’s
growth will always be limited by your business capital. However,
receivables factoring is an ideal funding option that will help solve
your problem without the debt and hassles inherent in bank loans.
How Can Receivables Factoring
Help My Agency?
Don't Get Left Behind!
monthly newsletter keeps you current on
the latest developments in the dynamic, rapidly growing cash flow
how it can help
Sign up today!
The lingering effects of the most severe economic meltdown since the
Great Depression and continued uncertainty about the future have made
many companies reluctant to hire permanent employees. Because
of this, the outlook for the staffing industry is bright, since
temporary staffing is the obvious choice to meet their personnel needs
both now and into the future.
For a busy staffing agency, cash flow problems are rooted in the time
difference between the payroll cycle and invoice payment: Employees
must be paid now, but clients want to pay later. Receivable factoring
allows you to bridge this gap with regular advances on your client
invoices, giving you a stable cash flow and the funds to not only meet
your current obligations, but also to finance the staffing of new
If sales are increasing rapidly, booking additional profits will not be
enough to sustain the growth. It is not the lack of profits that crush
many a staffing agency. It is poor cash flow.
Stop being your
Invoices + Signed Time Cards = Cash
Here are some of the many benefits you will enjoy with
- Stable, Predictable Cash Flow - Bill today, get paid in
- Immediate Working Capital
- End of Bad Debt - Free credit protection on your customers
- Start-ups and Young Companies Welcome
- Debt-Free Business Financing - Spend it as you like
- You Pay Only For What You Use - Your choose which invoices
- Full Payroll Processing & Invoicing Available –
Reduced overhead often pays for your
Factoring financing is much easier to get than business line of credit
or loan. Because factoring companies view your accounts receivable from
quality clients as good collateral, they are willing to advance you
funds against open invoices, making business factoring a very easily
obtainable and relatively simple form of business financing.
Want To Get Started Right Now?
It all begins with the:
Fill yours out and we will contact you immediately to
Most staffing companies seek the short-term benefit that receivables
factoring provides in generating cash to pay current expenses. Often
overlooked is the much bigger advantage that the agency with a
factoring program has over its non-factoring competition in bidding for
larger contracts. Because receivables factoring is tied directly to
invoices, the amount of funding available to your agency will grow
automatically as you take on more staffing clients. When compared to a
loan or business line of credit with a fixed credit limit, this
unlimited funding available with accounts receivable factoring makes it
a superior business financing tool for staffing agencies with good
How Does Receivables Factoring Work In A Staffing Agency?
Business factoring for a staffing company is a very straightforward
- Your customer approaches you with a staffing request. If
it’s a new
customer, the invoice factoring company performs a credit check on the
company and if approved, determines an advance rate for that customer.
- Your staffing firm provides the service and issues an
payment to a lock-box address maintained by the invoice factoring
company. You provide a copy of the invoice to the factor with any
required back-up documentation (e.g., time sheets).
- Upon receipt of the invoices, the factor will
your funds within hours.
- Your customer sends payments directly to the invoice
lock box and the factor remits the difference (reserve) between the
collected amount and your advance, less the factoring service fee.
For an additional fee, several factoring companies that specialize in
staffing can offer you back-office services for invoicing, payroll
processing, and tax deposits. Many staffing agency owners view the
reduction in overhead and the stress associated with performing these
time-consuming tasks in house as well worth the fee, allowing them to
focus their resources on developing the agency and marketing for growth.
What Does It Receivables Factoring Cost?
Factoring companies do not loan money; rather, they purchase your
company’s invoices at a small discount. The “discount rate” will
normally encompass the cost of the money you use and the fee for the
collections and processing service.
Beware of Hidden Fees!
Some factoring firms will have extra fees in
the usual factoring discount fee. More often than not, these “junk"
are disguised as set-up
penalty fees .
If you want maximum protection from these and many other "revenue
enhancers" routinely used by factoring companies, be sure to request
your copy of "Secrets
of Factoring Companies Exposed!" and read it before you start talking to factors.
In general, the discount rate your agency is offered will be affected
by anynumber of things, including:
- Your average monthly factoring volume
- The average size of the invoices sold
- Invoice terms and the length of time until they are paid in
- Your contractual commitment to the invoice factoring company
- The number of customers whose invoices you factor and their
is an ideal, debt-free business financing
solution for seasoned and new staffing agencies alike. Consider using
this powerful tool to help propel your business to the next level.