Invoice Factoring Services for Staffing Agencies

Invoice Factoring for Staffing Agencies

We know it’s a real challenge running a staffing agency. Slow-paying customers can mean serious cash flow issues for the business. That’s why American Receivable has built innovate cash flow solutions specially for staffing agencies. Leverage the strength of your accounts receivable and get cash in as little as 24 hours.

Invoice Factoring for Staffing and employment agencies

For over 40 years, staffing agencies have trusted American Receivable for cash flow solutions.

what is invoice factoring?

Invoice factoring, also known as accounts receivable factoring, is a financing solution that allows businesses to convert their outstanding invoices into immediate cash. In this process, a third-party financial company, called a factoring company, buys the business’s outstanding invoices for a percentage of their total value.

Once the factoring company buys the invoice, they take over the responsibility of collecting payment from the customer on the invoice due date. When the customer pays the invoice, the factoring company releases the remaining balance, minus their fees and charges, back to the business.

Invoice factoring can provide immediate cash flow to businesses that are waiting for payment on outstanding invoices. This financing option is especially useful for businesses that have long payment cycles, such as staffing agencies or other service-based businesses, that need to pay their employees or suppliers while waiting for their clients to pay their invoices.

Overall, invoice factoring is a way for businesses to access cash quickly and easily by leveraging the value of their outstanding invoices.

reasons to factor your staffing agency's invoices

Staffing agency clients typically take anywhere between 30 to 90 days to pay invoices. This leaves your staffing agency with a long period of not having liquid capital that could be used to pay bills, invest in technology, cover payroll, or hire more staff to take on even larger opportunities.

There are several reasons why a staffing agency might choose to factor their invoices, including

Cash Flow Management: Staffing agencies often experience cash flow challenges due to the time lag between paying their employees and receiving payment from clients. Invoice factoring provides immediate access to cash, which can help staffing agencies to manage their day-to-day cash flow needs.
Growth Opportunities Factoring allows staffing agencies to invest in growth opportunities, such as expanding their services or hiring additional staff. With immediate access to cash, staffing agencies can pursue growth opportunities without having to wait for payment from clients.
Non-Payment Risk: Invoice factoring transfers the risk of non-payment from the staffing agency to the factoring company. This can help staffing agencies to avoid losses due to non-payment and protect their cash flow.
Creditworthiness: Factoring can help staffing agencies to improve their creditworthiness by ensuring a steady cash flow and enabling them to pay their bills on time. This, in turn, can make it easier to secure financing in the future.
Time-Saving: Factoring companies typically handle collections and accounts receivable management, freeing up the staffing agency's time to focus on other aspects of their business.

staffing agencies factor with american receivable

why factor with american receivable?

For nine years in a row, American Receivable is named the Best Factoring for SMBs by Business.com

Named best invoice factoring company for SMBs by Business.com
No long-term commitment
No minimums or maximums
Rates starting as low as .8%, with up to 95% advances
Fast cash in as little as 24 hours
We operate independently and are not bank affiliated

our partners love us

Excellent company. They worked with us through all our challenges and help us keep on task with all of the many things going on. The financing is simple and extremely quick to fund. They are a pleasure to work with.

Thank you for making this process smooth and non-stressful. Your team is professional, your rates are reasonable, your execution is timely and you are easy to do business with. I have worked with banks, financiers, factorers, etc. for the past 30 years as either an executive or consultant and American Receivable is the most efficient company I have ever worked with. The only draw back is you have to listen to some of Jack’s Dad jokes occasionally. Mike Cunningham, CEO Pronto Solutions, Inc.

Have been looking for invoice financing for a very long time. Needless to say, most companies in this sector are anything but trustworthy. That is, until I stumbled across American Receivable. Brad Gurney was my first contact point at the company and after a very easy processing, I was up and running with them. They are fast, there is no hidden fees and they communicate with you regularly. Highly recommended!!

American Receivable has played and continues to play a vital role in supporting our company's growth. We entered our industry as a motivated start-up and with ARC's support, have established ourselves as a value partner to our client base and are looking forward to exceptional growth in the very near term.

I cannot express in words how wonderful working with American Receivable has been - especially with the pandemic. I have a Nurse Staffing company, and they have made sure I had the funds for payroll, and that my business is running smoothly. I highly recommend them to everyone!