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5 Reasons for Staffing Agency Factoring

November 23, 2015

staffing agency factoringBy factoring your staffing agency invoices, there is no need to wait 30 days or more for customer payment. Once you’re approved, your staffing agency receives the cash flow it needs to make payroll and land new clients in 24 hours or less.

1. Factoring Gives Staffing Agencies Reliable, Consistent Cash Flow

According to Entrepreneur.com, inadequate financing is one of the biggest reasons people fail in the staffing industry. But, it doesn’t have to be that way. Many staffing agencies are taking advantage of factoring, as it provides many no-hassle benefits to keep your agency financially on track, even when business is slow. Staffing agencies have numerous financial obligations such as workers’ compensation insurance, office equipment and payroll that can be solved by factoring.

2. Growing Your Staffing Agency with Factoring

Is your client base growing faster than your line of credit? Consider factoring as a solution to fund business expenses and payroll to keep moving forward. Factoring gives staffing agencies an ongoing, consistent supply of cash that actually grows as your staffing agency grows. And when you land a new client or contract, even more working capital becomes available to meet the needs of your growing staffing agency.

3. Payroll Funding for Staffing Agencies

No matter what, you have to pay your employees. But, unlike a traditional lender, factoring isn’t actually a bank loan. It won’t add liabilities to your balance sheet. It won’t show up as debt. And most importantly, the amount doesn’t need to be capped. If business is picking up, you can choose to factor as many or as little of your receivables as you want for an immediate cash flow injection. Factoring is the fastest and simplest way to turn your invoices into real working capital for your staffing agency business.

4. No-Cost Back-Office Support for your Growing Staffing Agency

By factoring your staffing agency invoices, you can focus more on your recruiting efforts and day-to-day operations, and much less time on your back office. TCI Business Capital offers extra services at no cost including dedicated relationship management, comprehensive account reporting, collection services, credit analysis and risk assessment. Unlike a bank, a credible factoring company can provide additional back-office support with no extra fees.

5. Staffing Agency Factoring is Flexible

Since factoring has a less rigorous underwriting process and a quick turnaround time (unlike a traditional bank loan,) you can realistically have access to working capital in as few as three days. And unlike a bank loan, factoring doesn’t limit the amount of financing your staffing agency can receive. Furthermore, if your receivables grow, so can your available working capital.

To learn more about how factoring can help your staffing agency, contact the financial services experts at TCI. Call 800-707-4845.

 
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