Terrific Wage News for IT Temp Employees Translates into a Cash Flow Management Problem for Information Technology Staffing Services Agencies.
A recent study shows that IT experts who work for temporary staffing agencies make 20% more in wages than their counterparts who work a full time job in the IT field.
Although that is great news for the IT experts, this means that information technology staffing services agencies must shell out higher paychecks than typical for the industry – ouch!
And while temporary staffing agencies pay their employees every two weeks or even weekly, the companies where these employees are outsourced often don’t pay their invoices for 45 to 60 days. Double ouch! Cash flow management issues are seemingly unavoidable in this situation.
Invoice factoring is the perfect solution for IT staffing agencies – and other temp staffing agencies – that face cash flow management issues.
If your agency offers staffing for information technology, factoring in an ideal alternative to a traditional small business loan. Those invoices which won’t be paid for another 60 days can be converted into immediate working capital.
Whether or not an agency provides staff for information technology services, factoring invoices means agencies can pay their workers competitive wages and take advantage of opportunities that come their way.
If you have questions about the structure of an invoice factoring proposal or how it can help your temp staffing agency, call me, Gage Price, at 800-833-3765 Ext. 150 or contact us here.