Choosing the Best Staffing Factoring Company 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.