Invoice Factoring for Staffing Companies
American Receivable specializes in invoice factoring for staffing companies. When staffing agencies experience cash flow problems, they typically turn to one of two methods to help get them back on track; business loans and invoice factoring. In this article, we’ll go through the differences between the two to help you decide which is best for your staffing company’s needs.
Because they don’t get paid until after they have filled vacancies for their clients, cash flow problems are a common occurrence for staffing companies. While they wait for clients to pay, they must continue to meet payroll for their temp workers as well as their own staff, advertise their services and available positions and faithfully meet the typical expenses most businesses have – rent, utilities, office supplies, insurance, taxes, etc.
To meet these expenses, many staffing companies turn to invoice factoring. While conventional business loans can provide their businesses with the cash they need, the approval process can be lengthy and invasive. Traditional business loans can take weeks to be approved and they also place limits on how loan proceeds can be used.
Traditional Bank Loans for Staffing Agencies
Potential drawbacks of traditional bank loans include:
- Lengthy application process
- Invasive audits
- Restrictions on how funds are used
- Approval based on your credit position, not that of your clients
Invoice Factoring for Staffing Companies
Our invoice factoring solutions for staffing companies offer a number of benefits including:
- Quick approval times
- No up-front fees
- No monthly minimum or maximum
- Next-day funding
- Up to 95% advances
- No long-term contract
- Rates starting as low as .8%
Our lending decisions are based on your clients’ financial stability – not your company’s credit history.
Invoice factoring is the ideal solution for staffing companies and can provide you with unlimited working capital without increasing your debt position.
In most cases, our clients return to traditional funding methods once their factoring agreement is completed.
American Receivable has been helping staffing companies meet their day-to-day cash flow needs since 1979. Give us a call at 1-800-297-6652 to learn how we can help improve your cash flow or click here to get a quick quote.
