Five Qualities of the Best Staffing Factoring Companies
Not all factoring companies for staffing agencies are created equal. Many accounts receivable factoring companies 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 Staffing Agencies Should Look for in a Factoring Company
If you’re considering payroll factoring, it’s important to know what to look for in a funding partner. We’ve compiled five qualities of the best staffing factoring companies to help you make the best financial decision for your business.
The reputation of a staffing factoring company is crucial. Do your research when trying to narrow down the best staffing factor for your business. Ask colleagues and others in your industry if they have experience working with an invoice factoring company. Perform a thorough Google Search on the names of your chosen staffing factoring companies. Check the Better Business Bureau. Request bank references, client references within the staffing industry, and a summary of their financial status. Factoring companies for staffing 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.
Staffing Factoring Experience
Note which factoring companies have been around for a long time. Those who have been in practice for a while 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. Staffing factoring companies with ten years of invoice factoring experience are generally well established.
Staffing 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 its nurse staffing, temporary staffing, medical staffing, IT staffing or construction staffing, choosing a factoring company that understands your staffing firm is key to managing your business growth.
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 factoring company 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.
Additional Factoring Services for Staffing Companies
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 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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