Temporary Staffing Agency Factoring
Making payroll is the highest priority for staffing agency company owners. However, meeting payroll can be a challenge if your company is growing very quickly and using all its available capital. If not managed correctly, you could reach a point where you can no longer grow - or worse - where you could miss payroll and get into problems. This situation is fairly common among successful staffing agencies. Fortunately, this can easily be solved with factoring financing.
We offer services in the USA and in Canada.
Factoring rates as low as 1.5%. Advances as high as 90%.
Click here for a quick quote or call (866) 720 1922.
(subject to monthly volume and industry).
How does factoring work?
Factoring helps staffing and employment agencies that have cash flow problems by accelerating funds that are tied to slow paying invoices. Basically, a factoring company intermediates the transaction and provides you with an advance on your open invoices. The transaction settles when your customers pay. Most factoring lines are flexible and can grow with your sales.
Most transactions are structured using a two installment payment model and follow this format:
- You deliver services and invoice your client
- You submit a copy of the invoice and the timecards to the finance company
- You get an advance on your invoices. The advance will average 90% of the gross value
- Once your client pays the invoice, you get the remaining 10%, less a small fee
Benefits of staffing finance
Employment agencies that implement factoring programs can enjoy the following benefits:
- Better liquidity - thanks to the finance advance
- Flexible financing that quickly accommodates growth
- Quick deployment time
Get an online quote now! Questions? Call (866) 730 1922. Services in the USA and Canada.
The most important qualification requirement is to have credit worthy commercial customers. This is important because your invoices secure the transaction. Also, your company should:
- Be well managed
- Be clear of legal and tax encumbrances
- Be profitable (or on path to profitability)
You can get additional information at our Factoring Resource Center or from these articles: