The staffing industry is strong and has been estimated to provide over 14% of the jobs in America. This is good news for the owners and operators of staffing companies as well as their clients and employees. This also means that many of these businesses are looking to expand and trying to find the funding to do this. Factoring of accounts receivable can help provide capital for growth as well as free up funds to help pay more immediate bills. More and more staffing companies are choosing to factor their receivables to take advantage of the many benefits to this process.
Staffing Companies Are Choosing to Factor Their Receivables for:
- Flexibility in financing
- Growth-enabling working capital
- Funding for lean business models
- Peace of mind
Flexibility
Many factoring companies, like Eagle Business Credit will allow their clients to factor all or part of their accounts receivable. They will also usually let their clients choose how long to factor with them without having a long term contract. This allows staffing companies to factor just what they need to reach specific goals or to supplement a set portion of their budget with factoring. This flexibility can extend into the monthly workings of the staffing agencies because they will be able to lower their goals to more attainable levels.
Unlimited Funding for Expansion
Staffing factoring is connected to the invoices of the company and not to their credit or financial history. This means that as the company expands and sends more invoices to the factoring company, they can receive larger sums from this process to help them grow more. With staffing agencies most of their costs will be the weekly payroll of their various different employees, without the right funding for this they run the risk of having the company shrink instead of grow. The more capital they have, the better they can meet the needs of their clients and keep their employees working.
Support for Cutting Costs
Since many factoring companies will offer staffing companies up to 90% of their invoice value in advance, they can save money in the long run by not having to pay late fees or losing employees due to payroll problems. Factoring accounts receivable means having enough cash on hand to cover payroll and being able to accept larger clients without straining cash flow. Staffing companies can also cut costs by not having to provide collections efforts on past due accounts. By purchasing the accounts receivable from staffing companies, factoring companies assume the risk of the invoices going unpaid. A staffing company factoring their invoices has an extra level of protection from customer non-payment.
Peace of Mind
Most of the time staffing companies can fill out one factoring application, be approved quickly, and have cash in hand soon after. This can give those companies the peace of mind of knowing exactly when they will be paid on their invoices instead of having to wait for the invoices to be processed and paid by clients. Staffing factoring can offer many benefits to staffing agencies, benefits that they can pass on to their employees and clients. Flexible capital that is easily accessible and can save you time and money is always a benefit to companies, especially when they are looking to expand.
Eagle Business Credit Staffing Factoring
Eagle Business Credit is a factoring company in Atlanta, GA that provides accounts receivable funding or factoring services for staffing companies. We specialize in staffing factoring, and understand the specific pain points in the staffing industry. Eagle’s factoring services come with 24/7 access to an online portal to view account updates or status, an account manager with experience in staffing factoring, no hidden fees, and stronger cash flow.