How Factoring Can Help With Staffing Industry Financing
Finding the right staffing industry financing for your company’s needs can be frustrating when you have already done the work and have to wait for payment. Factoring your invoices can help cover the gaps, even out cash flow and even help you grow your company with back-office support and no debt. Because this type of financing is an advance with your invoices as collateral and form of repayment, your company’s credit history is not checked.
Cash Flow Consistency
One of the biggest problems for small businesses is managing a consistent cash flow. This problem is complicated in industries or companies where large accounts are given 30 to 90 days to pay for services. Inconsistent payments can leave you with no wiggle room this week and an abundance of funding the next. You can get paid for those invoices regularly and keep your cash flow steadier with factoring. You can even factor in only one invoice to catch up on bills after a more extended project or contract with the factor for all your billing.
Many companies use staffing industry financing to fund growth projects such as larger headquarters, increased workforce, or added products and services. Some of these growth opportunities will be time-sensitive, and having the funding you need to get the deal before it goes away can help you meet your goals more quickly and efficiently than through traditional lending methods. When you factor in your accounts receivables, you use those invoices as collateral and payment for an advance. The advance is usually approved and dispensed within days, while a bank loan can take months.
Some factors will offer back-office support services such as customer relationship management and collections services. These services will free you up from the office to help at the front desk, recruit new talent, and secure more clients. In other words, factoring can delegate many of the billing and collections process tasks and leave you more time to focus on your core competencies. The support factoring companies can offer your business can do more than free up your time; however, they can also help you avoid uncomfortable or confrontational collections calls.
Staffing industry financing can come in many forms, such as accounts receivable financing or factoring. Financing of any kind should offer your company benefits such as consistent cash flow and pay for growth goals. Factoring can also offer back-office support and speed that other financing options do not.