Gaining Fiscal Piece of Mind with Invoice Factoring
Ensuring that revenue exists to cover the costs that come with running a business is a constant pressure when working in a capital-intensive business like a staffing agency. Payroll costs can add up quickly and having unpaid invoices can tie up time and resources needed for other parts of the business’ continued operation. This can stall the ability to take on new clients, and prevent competitiveness, which affects growth until those payments are received and processed.
Invoice factoring can help alleviate these road blocks. By selling unpaid invoices to an accounts receivable factoring company, businesses can get access to working capital immediately, rather than waiting extended periods of time to receive payment for jobs that have already been completed.
By partnering with an invoice factoring company, you can focus on important things such as expansion and development without worrying about cash flow that may otherwise be unsteady or limiting to your manufacturing goals.
Benefits of Using Invoice Factoring for Your Staffing Agency
Having a partnership with a factoring company provides more than just instant access to valuable funding and cash flow. How you utilize accounts receivable financing can also provide other benefits that can assist and provide value to your manufacturing business in many ways.
Some of the methods include:
- Fast Approval: All businesses run into situations where they need capital quickly and waiting for traditional financing may not an option. Whether it is a sudden increase in business, repairs within the workplace, reorganization, or any other reason, having the financial cushion can ensure that problems can be taken care of without putting a company into straining debt.
- Access to Cash Immediately: Rather than having to wait weeks or months until an invoice is paid by a client, you can receive funds quicker upon completion of work, allowing for a steadier cash flow. This means that a staffing agency can work with new clients, hire more workers, and pursue additional opportunities via an invoice cash advance as there is no worry of having the needed capital to cover costs.
- Easier Qualification for Needed Capital: In many instances, qualifying for invoice financing is easier than qualifying for a line of credit or a business loan. Factoring companies base their funding and cash advances based on the creditworthiness of your customers and clients, rather than that of the business they are working with. This benefits small to medium sized businesses that may have need of funding in amounts not able to be gotten by a bank loan.
- Credit and Resource Flexibility: Especially important for staffing agencies that are just starting, ones that are in debt, or may have had a sudden boost in growth, working with an invoice factoring company can provide you financial opportunities that may not otherwise exist. For many staffing agencies, being able to cover payroll expenses and take on new workers is a stress alleviated by not having to wait for lengthy billing processes to transact.
- Growth Opportunity: The ability to grow and expand operations is important to the continued health of any company. Forming a partnership with an invoice factoring company allows you to focus on achieving maximum growth by not having mandatory minimums or maximums on financed receivables.
- Avoiding Pay Gaps: As staffing agencies don’t normally get paid until after an employee logs a time card or after a set amount of time, having a steady cash flow can greatly improve financial forecasting when planning for the future of business operations. Through advances on invoices, an agency can ensure that there is a steady flow of capital and allow for plans to be executed rather than worrying about employee turnover and other common problems that come with waiting for invoice payments.
Reliable Invoice Factoring with American Receivable
An important step for any business that is looking utilize the benefits invoice factoring provides is making sure that the accounts receivable company they are working with is capable of providing not just capital, but the excellent service to ensure that their needs are met.
Established in 1979, and with clients all throughout Texas and the rest of the U.S., American Receivable has the financial resources and the knowledge required to meet your demands. Owner managed and operated, our plans are individually designed and flexible. This allows us to ensure that whether your company is just starting out and needs capital to get on its feet, or you’re an established staffing agency looking to improve cash flow, we’ll be able to structure our services according to what best benefits you.
To find out whether Business Factoring is right for you, call us at 800-297-6652 and learn about what American Receivable can do for you.