Staffing Agency Invoice Factoring
Not all factoring companies for staffing agencies are created equal. Many claim to understand the temporary staffing industry, but oftentimes don’t. Staffing companies will get the most from working with a factoring company that offers programs tailored to their business, not a ‘one-size-fits-all’ approach to funding. How can business owners decipher the best staffing factoring companies from the less than stellar ones?
What Should Staffing Agencies Look for in a Factoring Company?
If you’re considering factoring your staffing agency invoices, it’s important to know what to look for in a factoring company. We’ve compiled five qualities of the best staffing factoring companies to help you make the best financial decision for your business.
1. Trustworthy Reputation
The reputation of a staffing factoring company is crucial. Do your research when trying to narrow down the best factor for your business. Ask colleagues and others in your industry if they have experience working with an invoice factoring company.
Perform a thorough internet search on the names of potential staffing factoring companies. Check the Better Business Bureau. Request bank references and client references within the staffing industry, read testimonials and a summary of their financial status.
The factoring company you work with should have a reliable credit history and a list of long-term clients. Remember, the staffing factor will work on behalf of your company, so a demonstrated track record of professionalism is a must.
2. Experience with Staffing Agency Factoring
Note which factoring companies have been around for a long time. Those who have been in practice for awhile will have proven track records and a solid understanding of the unique financial needs of staffing agencies. The staffing factoring company should be able to demonstrate financial stability throughout multiple business cycles. Factoring companies with ten years of invoice factoring experience are generally well established.
3. Industry Knowledge
Not all invoice factoring companies have extensive staffing industry knowledge. The best factoring companies understand that every industry has unique staffing needs. Experienced staffing factoring companies possess the specific know-how to manage the financial needs of staffing agencies across a wide range of industries. Whether it’s nurse staffing, temporary staffing, medical staffing, IT staffing or construction staffing, choosing a factoring company that understands your particular staffing firm is key to managing your business growth.
4. Competitive Factoring Rates and Flexible Terms
Competitive factoring rates are important. Of course, it’s smart to check out multiple factoring companies to get a feel for what constitutes a fair rate, but keep in mind that the lowest factoring rates aren’t always what they seem. Hidden factoring fees and lengthy terms may accompany low rates. Be sure the staffing factor offers flexible terms that work for your business. Flexible terms will enable your staffing company to choose the invoices you want to factor as needed. Discuss the terms, fees, and conditions of payment before selecting a staffing factor.
5. Additional Factoring Services
Factoring services often go beyond increasing your cash flow. Does the funding company include additional factoring services that will help you grow your business? Account management and back-office services should be part of your decision. Many staffing factoring companies offer administrative support, payroll funding including payroll checks, payroll reporting, invoicing, and invoice mailing as part of their factoring service free of charge.
This way, you can get back to developing your business and save money on payroll because you won’t need to hire additional administrative staff. A dependable factor will readily provide up-to-date information about your account and invoice payment collection. The top staffing factoring companies offer high-tech reporting capabilities and 24/7 access to information online.
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Factoring is an Easy Way to Fund Your Staffing Agency
Invoice factoring can provide the working capital to cover payroll, obtain back office support and grow your company.
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There’s a reason that factoring is a popular form of funding for staffing companies. Let our staffing factoring experts match you with a factoring company that meets your business needs. Factor Finders can help your staffing company fund payroll, cover operating expenses, and grow your business with custom-tailored factoring solutions.
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“They were able to help find us a new factoring company with excellent customer service all across the board.”
— Heather, Washington