| Own a staffing agency or company? Need funds to | | | | Factoring provides you with an advance on your |
| cover payroll? Learn how a factoring company can | | | | invoices from slow paying clients. That advance |
| help you. | | | | — available soon after you invoice for your |
| One of the biggest challenges for staffing company | | | | work — can be used to cover payroll and other |
| owners is meeting payroll. Employees must be paid | | | | expenses. In effect, factoring receivables provides you |
| every week — without exception. However, | | | | with predictable cash flow enabling you to better |
| paying employees can be very difficult if an agency | | | | operate your staffing company. How does invoice |
| does not have predictable or reliable cash flow. What | | | | factoring work? Well, it’s a simple solution. It |
| is worse, waiting for a payment from a slow paying | | | | works as follows: |
| client can seriously jeopardize the agency’s | | | | 1. You deliver a copy of the time sheet and invoice to |
| ability to function. This situation, unfortunately, is quite | | | | the factoring company |
| common in the staffing industry. What is the solution? | | | | 2. The factoring company advances up to 90% of the |
| When owners or managers face slow cash flow their | | | | invoice within 24 hours |
| first instinct is to try and get business financing from | | | | 3. Once the invoice by the customer the transaction is |
| their local bank. However, they soon learn that getting | | | | settled |
| a business loan is very difficult. Most banks require that | | | | Factoring fees can range from 1.5% to 4% per month |
| the owner have an extensive business history, | | | | and are based on your business volume and other |
| spotless personal credit and substantial collateral. | | | | criteria. One of the most attractive features of |
| Unfortunately, small businesses seldom qualify for | | | | factoring is that it is easy to obtain. Most staffing |
| business loans. Nevertheless, there is an alternative | | | | agencies will qualify provided that they do business |
| that can help you finance you staffing agency. | | | | with good customers and are free of problems. |
| It’s easier to obtain than a business loan, can be | | | | Factoring invoices is an ideal solution for both |
| set up in days and is available to most business | | | | established and new companies and can help propel |
| owners. And, it provides staffing agencies predictable | | | | your business to the next level. |
| cash flow. The solution is called invoice factoring. | | | | |