Staffing companies are at the mercy of their clients when it comes to getting paid. You place a new hire and then have to wait for your fees to be paid. Some clients move quickly on sending payments to you, but some don’t. Depending on the terms of the contract, you may have to wait several months to receive the entire amount due to you.
In the meantime, you need to keep up with your own financial obligations and responsibilities. What are your options when cash flow falls short? Letting your own bills and obligations slide could hurt your business in the long run. You could try to secure a business loan or a line of credit, but those either depend on your credit score or require business assets as collateral. For some companies, traditional banking options are simply not favorable.
A third option is to Factor your accounts receivable.
Solve Your Cash Flow Problems With Factoring For Staffing Companies
Factoring for staffing companies makes sense if you have outstanding invoices or accounts receivable and cash flow concerns. Factoring is essentially an advance on your invoices. When you factor your accounts receivable, the lender provides you with a percentage of the invoice due to you, giving you the cash you need immediately. Factoring for staffing companies means you have consistent cash flow, which allows you to keep current on your own bills and financial obligations regardless of when your invoices get paid. Once your invoice is paid, you get the balance due minus the fee to the lender.
Click4Capital Lenders Are Standing By
Unlike traditional bank loans, lenders who offer factoring do not make the loan contingent on your credit history or require your business assets as collateral. Instead, these lenders examine the ability of your customers to pay you.
If you think Factoring is right for you, contact us at 1-800-496-7720 to discuss your needs. We work with a network of over 160 lenders nationwide and offer a quick 24-hour turnaround on most applications once all documentation is received.