Invoice Factoring Group Re-Launches Staffing Agency Factoring
(For immediate release) Miami, Florida – Staffing agency owners can now benefit from Commercial Capital’s staffing agency factoring program. The factoring program was created to help staffing and temporary employment agencies manage their payroll expenses.
One of the biggest challenges for staffing agencies is meeting payroll. Most staffing agency clients pay their invoices in 30 to 60 days; however, agency employees need to be paid on a weekly or bimonthly basis. Unless the staffing agency has a significant cash reserve it will run into working capital problems.
“Factoring invoices allows staffing agency owners to get paid in 2 days, eliminating the 60 day payment cycle,” said Marco Terry, president of Invoice Factoring Group. “It provides them with financial breathing room and allows them to grow. It provides them with truly flexible business financing.” Terry later added.
Invoice factoring can easily be incorporated into a staffing agency, as the process is very seamless. It works as follows:
- The staffing agency provides the services, obtains time sheets and creates an invoice
- The invoice is sold to the factoring company, who provides funds up front
- The transaction is closed as soon as the client pays the invoice
Receivable factoring is different than a conventional business loan. Accounts receivable factoring lines are fairly easy to obtain and can be set up in as little as 4 days. The most important qualification requirements are that the agency work with strong credit worthy clients and the agency be free of legal problems.
The staffing agency financing program is also available to security agencies under the security guard agency factoring program.