As a growing staffing company, managing cash flow can be a challenging task, especially when it comes to meeting payroll obligations and taking on new customers. Fortunately, there is a financial solution that can help alleviate these concerns and provide numerous benefits for staffing companies: invoice factoring.
Reliable Cash Flow for Payroll and Taking on New Customers:
Cash flow is the lifeblood of any business, and staffing agencies are no exception. With invoice factoring, staffing companies can access immediate cash by selling their outstanding invoices to a factoring company. This quick injection of funds allows them to meet their payroll obligations on time, ensuring employee satisfaction and maintaining a healthy work environment. Additionally, with improved cash flow, staffing companies can confidently take on new customers, expand their operations, and seize growth opportunities without worrying about the strain on their finances.
Reduced Credit Risk:
One of the significant advantages of invoice factoring is the reduction of credit risk to the staffing company. Instead of carrying the burden of credit risk on your own, the factoring company will run numerous credit reports verifying the creditworthiness of your customers and prospects. This allows you to focus on your staffing agency without the constant worry of non-payment or default by customers.
Managed and Monitored Accounts Receivable:
Invoice factoring companies not only provide financing but also offer comprehensive accounts receivable management services. They take care of tasks such as credit checking, collections, and bookkeeping. By outsourcing these time-consuming and often complex tasks, staffing companies can streamline their operations and free up valuable resources to concentrate on core business functions and building relationships with clients.
Flexibility to Factor More or Less:
One of the key benefits of invoice factoring is its flexibility. Unlike traditional financing options that may have rigid borrowing limits, invoice factoring allows staffing companies to factor as many or as few invoices as needed. This flexibility is particularly advantageous for growing staffing companies that experience fluctuations in their invoice volumes or need funding on a project-by-project basis.
Qualification Based on Your Customers’ Credit Strength:
Unlike traditional lending that primarily relies on your company’s creditworthiness, invoice factoring qualification is based on the creditworthiness of your customers. This is particularly beneficial for growing staffing companies that may have limited credit history or face other challenges in securing traditional bank financing. As long as your customers have a strong credit standing, you can qualify for invoice factoring and access the much-needed funds to support your business growth.
Fast Funding:
In the fast-paced staffing industry, quick access to funds is essential. Invoice factoring offers expedited funding, often within 24 hours after submitting the invoices. This swift turnaround time allows staffing companies to address immediate financial needs and seize business opportunities without delay.
For staffing companies seeking financial stability and growth, invoice factoring with American Receivable emerges as a valuable solution. At American Receivable, we understand the unique challenges faced by entrepreneurs because we are entrepreneurs ourselves. With over 44 years of experience, our company is managed by the original founders, who have firsthand knowledge of the staffing industry. As a top-rated factoring company, we provide the benefits of invoice factoring, including improved cash flow for payroll and taking on new customers, reduced credit risk, managed and monitored accounts receivable, flexibility to factor more or less, qualification based on your customers’ credit strength, and fast funding. Trust us to be your partner in financial success and propel your staffing company to new heights.
Apply today to get the cash you need to grow your company tomorrow.
Jack Stieber jack@americanreceivable.com 972-404-4726
Sarah Fischer Sarah@americanreceivable.com 972-404-4726
Julie Adams julie@americanreceivable.com 800-297-6652
Brad Gurney brad@americanreceivable.com 800-297-6652
Dakota Stieber dakota@americanreceivable.com 512-339-5112
