For any type of staffing service, your employees are the key to your success. By having the best temporary workers for general or specialized temporary jobs, you will build a reputation for excellence that allows your business to grow. Through staffing agency factoring services that growth can be facilitated through providing a steady, regular cash flow to make payroll and recruit top employees.
The biggest challenge to most staffing agencies is the gap between providing workers and getting paid by your customers. This can be a few weeks to months, and during that time having enough cash on hand to pay your employees is a very real concern.
With staffing agency factoring, you have the option to sell some or all of your accounts receivable to the factor. This will be your decision, but there are some benefits to consider in selling your accounts receivable that should be considered.
Immediate Cash on Hand
It is important to realize that staffing agency factoring is not a loan, and there is no repayment. There are also no issues with the credit score of your business as the factor considers the creditworthiness of your customers and their ability to pay the invoices they have assumed.
With the application process completed online in just a few minutes and approval by top factoring companies within 24 hours of application, this is a very fast process. Upon approval the transfer of a percentage, often up to 80% of the value of your accounts receivable held by the factor, will be completed within days. This allows you immediate access to the cash you need through staffing agency factoring.
Additional Benefits
While you have access to the cash you need in days; you also have the benefit of the factor handling all the paperwork associated with the accounts receivables they have purchased.
This allows the company providing the staffing agency factoring to manage the collections, provide due diligence on your customers, and also to prepare necessary reports to allow you to make the best financial decisions for your company. These additional benefits are not the primary reasons staffing agencies use factoring services, but they add to the value-added element to this option over other types of funding.
The use of staffing agency factoring is very common and small to large companies providing temporary workers in all industries routinely use factoring. It is also a great option for periods of growth and recruitment, allowing you to take on new contracts and jobs with the confidence to meet your financial obligations.
