Despite high unemployment, small businesses are still having trouble finding skilled workers. Robert Half recently surveyed small business owners, more than half of whom cited the skills gap as their number one hiring challenge.
Employers, mindful of the cost of bringing on and training new employees, are becoming ever more selective. Many open positions are in skilled trades, and applicants lack the necessary skill set or experience to perform the job well. However, many other positions are for basic administrative support; employers with these job openings are worried that their overqualified applicants will quickly tire of the position and leave in search of something better.
The lack of skilled professionals drives some small business owners to turn down new projects and opportunities for growth so as not to jeopardize current business. Some business owners are offering higher salaries or on-the-job training to attract talent, while others are simply doing without in order to save money.
Small business factoring is an attractive solution to business owners’ plight. A business factor will purchase existing invoices and advance cash within 24 hours, allowing a small business owner to invest in hiring the skilled professionals she needs to make the company grow.
The cash flow generated from business factoring means employers can offer training to otherwise-qualified applicants, work with recruiters who specialize in finding the right kind of talent, and offer incentives particular to small businesses. Small business owners can then take on new and bigger jobs and grow their company. Unlike traditional lending, the cash available with small business factoring grows with the business and offers nearly unlimited funding potential.