Businesses in the staffing industry help their clients meet their own needs for qualified temporary workers, giving them stability while experiencing staffing shortages. But while client companies can have as much as 90 days to pay for the temporary services they receive, the staffing company itself usually has to pay its workers on much shorter terms. That’s where staffing loans and staffing funding through factoring can make a big difference in your operations.
Benefits of Invoice Factoring for Staffing Agencies
Staffing factoring offers many benefits. Just to name a few:
- You can offer credit to more new customers.
- You can give customers a longer time to pay, because they have as much as 90 days to pay while you get paid within 24 hours.
- Staffing factoring is a type of financing that is not based on tangible assets.
Factoring has become a popular form of staffing funding, since temporary staffing agencies can use it to make payroll on time while still having the ability to extend favorable payment terms to new clients. And since invoice factoring is a type of funding that’s based on money you’re already owed from clients you’ve vetted, it’s ideal for new or growing staffing agencies or those with a less than perfect credit history.
How does Staffing Factoring work?
With factoring for staffing companies, you can get the funding you need quickly, in an easy 3-step process:
Step 1: Send Invoices
Send us the invoices of your choice for funding.
Step 2: Receive funds
We complete a credit review of your customers, verify start of employment (such as via time cards), and fund you immediately.
Step 3: Customer payment
Once we receive payment from your customers, we will pay off the funds advanced less our fee, and rebate the balance to you.
If staffing factoring sounds like it might be the funding option you need to get your business past a cash crunch or to help you grow your business and expand into new markets, fill out our funding application online or call us for a free quote at (800) 647-0850!