| One of the fastest growing industries in the USA is | | | | the credit power of the customers that they work |
| labor outsourcing in the staffing industry. Staffing | | | | with. As long as the staffing firms clients have |
| companies provide skilled and unskilled labor to | | | | reasonable credit payroll financing or payroll factoring |
| companies that would rather outsource all the | | | | can usually be approved. |
| employee expenses and issues. Often staffing firms | | | | Once payroll financing is in place the staffing agency is |
| become strapped for cash as they need make payroll | | | | not limited by cash flow. As long as they seek out |
| weekly and the client does not pay them for the | | | | customers with good credit the funding is available. |
| service for 30 to 45 days. Payroll financing and | | | | This opens many doors for growth as sales will only |
| payroll factoring can provide a solution for this cash | | | | be limited by sales ability and not because the staffing |
| flow gap by allowing the staffing agency to have | | | | agency cannot meet the payroll obligations. In most |
| access to the billed time card revenue immediately | | | | cases the staffing agency is only giving up 1% to 3% |
| upon being confirmed by the client, usually via a time | | | | of the amount the bill the client to have the funds |
| sheet or hours worked spreadsheet. | | | | available for payroll immediately. Most labor staffing |
| Another staffing financing issue is that staffing | | | | companies find this a very reasonable business |
| companies typically have limited collateral to provide a | | | | expense to be in a position to grow the business and |
| traditional lender due to the nature of the business. | | | | take on additional customers. |
| Banks often cannot provide any credit facility until | | | | If your in the staffing industry and struggling with payroll |
| several years of profitability has occurred. Most of | | | | expense and cash flow you should consider giving |
| the payroll financing and payroll factoring for staffing | | | | payroll financing or payroll factoring a look. Most likely |
| company products do not require additional collateral | | | | some of your competitors are already using this tool |
| other than the accounts receivable of the staffing | | | | so it could also help you even up the playing field. |
| company. This allows the staffing agency to utilize | | | | |