As this year closes many staffing companies are preparing for the coming year. Staffing agencies have to constantly align the demand for their services with the changing workforce. Budgets and forecasts for the coming year should also be reviewed. Confirming that you have access to growth capital is also a top priority for 2023.
Demand for outsourcing continues to grow. Staffing companies are looking to take advantage of this opportunity. First, they have to be confident that they can afford to grow. Taking on larger accounts means affording a much bigger payroll and slower payments from your new customers.
ALL STAFFING INDUSTRIES
Whether it’s IT Staffing, Healthcare Staffing, Construction Staffing, Warehouse Staffing, Security Staffing or Oil Field Services, the biggest obstacle to growth is cash flow. Winning a new customer means having to make several payrolls before the new customer even pays their first invoice. This can be challenging even for well-established staffing companies.
FACTORING COMPANY TO THE RESCUE
Shrewd staffing agency owners know that a Top Rated Factoring Company will finance their growing company. Invoice factoring provides the money needed for payroll and operating expenses with little paperwork and fast turnaround times.
HOW DOES INVOICE FACTORING WORK?
Factoring is a simple transaction where the staffing agency sells their invoice to the factoring company. Most factoring companies will advance 85% to 90% of the invoice amount on day one. The business owner now has more than enough cash for payroll and operating expenses. Once the customer pays the factored invoice, the factoring company refunds the balance, less a small discount fee.
ADVANTAGES OF INVOICE FACTORING
By partnering with a factoring company, staffing companies have access to the cash it takes to grow a business. There are other benefits to invoice factoring:
- Streamlined Application
- Next day funding
- Reduced credit exposure
- 24 hour online portal access
- Professional collection assistance
GROW WITH AMERICAN RECEIVABLE
American Receivable has a 44 year track record of growing Staffing Companies. Call us today to learn how partnering with American Receivable can put you on the fast track for 2023!
jack@americanreceivable.com 972-404-4726
brad@americanreceivable.com 800-297-6652
dakota@americanreceivable.com 512-339-5112
