Invoice Factoring Companies Expertly Address a Challenge Unique to Staffing Firms.
Today, I will spotlight one industry that greatly benefits from receivables factoring; staffing firms. More specifically:
- Temporary staffing agencies,
- Nurse staffing agencies,
- Medical staffing agencies,
- Information technology staffing services
- Engineering employment staffing services.
For many staffing companies, cash needed to pay employees vs. cash on hand doesn’t always match up.
Meeting payroll is the greatest expense for staffing firms, and it often poses a challenge. They need to pay their employees every two weeks, but businesses where they place these employees often pay their invoices every 30 to 45 days.
If the staffing company doesn’t have a comfortable bank balance, the problem is obvious. To compound the issue, many staffing firms turn away business because they can’t afford to hire enough staff to do the job right.
Receivables factoring allows staffing companies to run their businesses efficiently and effectively.
With additional factoring funds in hand, staffing companies can continue to add to their talent roster, fostering new business relationships and expanding their opportunities. IT staffing firms, which often have a 30%+ profit margin, particularly benefit from using payroll factoring companies.
For staffing agencies, factoring means using readily available funds to cover payroll instead of waiting weeks for an invoice to be paid. This gives these companies the ability to place more employees and expand their business.
Are you tired of racing to make payroll every Tuesday? If so contact me at (800) 833-3765 Pin #150 or complete an invoice factoring application now . Tell me about your experiences, please leave a comment below.