Many companies struggle to meet payroll and operating expenses, especially when their customers are slow to pay their invoice. Staffing companies often experience this pain when they have weekly payroll but are only getting paid every 30 days by their customers. Factoring is the solution for this common problem.
Successful staffing companies know better than to rely on their slow paying accounts receivables. Waiting 30 to 90 days for payments can quickly become a cash flow nightmare for the owner. Traditional lenders are hesitant to lend on accounts receivable and often take several months to approve a loan. Factoring provides a staffing company with cash by selling their accounts receivables at a discounted rate. Factoring offers a fast and easy infusion of cash into the staffing company.
Factoring offers an accessible solution for staffing companies that are not able to qualify for traditional lending. Factors base their credit decision on the credit of your customers – not on the staffing company. This means factors offer higher advance rates than banks. Fees for factoring will be far less than credit card and merchant cash advances.
A great benefit of factoring your invoices is the factor will grow as your staffing company grows. Not limiting your company to a set loan amount.
Staffing companies make money by selling and recruiting, not worrying about cash flow. American Receivable has provided factoring for over 42 years to all types of businesses, including staffing companies, manufacturers, distributors, oil and gas service companies, IT, telecommunications, and service companies. To receive your free quote call 1-800-297-6652 or complete our quick online application form.