How Staffing Agencies Can Use Factoring
Almost any company which routinely generates invoices that must be paid by customers, can be helped significantly by participating in invoice factoring. Any business owner who has had to wait for invoices to be paid, and who experiences painful cash flow shortages as a result, can understand the importance of maintaining regular cash flow. If your staffing agency is constantly waiting on invoices to be paid, you can derive a great deal of benefit from invoice factoring.
Improved Cash Flow
Staffing agencies, like any other business, have monthly expenses to meet and all these have to be paid on time if you’re going to stay in business. When you’re obliged to wait for customers to generate your incoming revenue, that can leave you holding the bag with regard to paying your own business expenses. Invoice factoring will put immediate cash in your hands, so you won’t have to wait for invoices to be paid, and so your business can stay on an even keel.
Fast and Simple Financing
If you were to apply for a bank loan, you might be waiting months before actually getting cash in your hands, and that’s assuming you even get approved for the loan. With invoice factoring, you can have money in your hands in just a few days, and approval will be based more upon the creditworthiness and prompt payment history of your customers, rather than on your own credit history. You’ll have a much better chance of being approved for invoice factoring, and once you do receive approval, you’ll have money much more quickly than with any other type of financial transaction.
There are more ways that invoice factoring can be of value to your staffing agency besides merely paying your bills and surviving. Once you have more consistent cash flow, you’ll be able to concentrate on growth factors such as marketing and promoting your business. This will provide you with the degree of freedom which is necessary to improve your business, and help your staffing agency to grow.
Is Your Staffing Agency Considering Factoring?
Factoring can be a good fit for many companies, even staffing agencies. If you’re considering factoring for your staffing agency, contact us at Advanced Commercial Capital, so we can discuss some potential solutions to any cash flow issue you may have.