In today’s economy, a growing number of businesses of all types are hiring temporary staff. Companies that recruit and hire staff operate in a busy environment with increasing competition.
Whether a temporary staffing company works with medical staff or maintenance workers, most of them face similar challenges. The owners may want to expand their companies, but waiting 30 days or more for their customers to pay them holds them back. They are especially challenged when a potential client requires even longer payment terms, such as 45 or 60 days. If you own a temporary staffing company, you know you must meet weekly payrolls, pay for insurance, taxes, and workers’ compensation fees, maintain your office staff, and budget funds for many other business needs. Yet it takes time and a steady cash flow to expand your client base.
Factoring your invoices (accounts receivable) is a quick way to meet your payroll obligations and other expenses without turning down business based on a potential client’s payment terms. Factoring helps you close that stressful and risky gap between your staff paydays and your clients’ payments – without incurring any debt. When workers who are hired for short-term or long-term placements are not paid on time, your business is in trouble. This funding method is especially rewarding for staffing companies that experience seasonal changes.
Factoring Tips for Staffing Companies
Look for a factoring company with specialists who know the temporary staffing industry and help temporary staffing business owners reach their business goals every day. You want to work with factoring professionals who understand your business challenges.