This is the tenth installment in our Starting a Staffing Company series. Bookmark us and follow #startingastaffingcompany on Twitter for more information about starting your own temporary staffing agency.
It is the Saturday before Christmas, but if your staffing company is short on cash then you may find it difficult to fully enjoy the holiday season.
Instead of passing the rest of the year in cash flow crisis, look at payroll financing as a source of fast funding for your staffing company.
Payroll financing offers immediate access to your receivables in cold, hard cash, without waiting for your clients to pay. With the money you receive you can make payroll, pay employment taxes, and invest in building your business. Once you have been approved for a payroll funding program, the process is simple:
- Place your employees with your clients, where they complete the work
- Invoice your clients as usual, and send copies of the invoices to the funder
- Receive 70-90 percent of the face value within 24 hours of invoice acceptance
- Run your business!
- Receive the remaining balance of the invoice, minus fees, when your client pays
Unlike a traditional line of credit, there is nothing to repay – the money you receive is simply an advance of money owed to you! In addition, you do not have to offer up collateral or meet strict lending criteria that you would at a bank; rather, the funder will base their decision on your clients’ creditworthiness.
When you use payroll funding consistently you can build your credit by meeting your company’s financial obligations on time and take advantage of early payment incentives! Your staffing company can further benefit from the unlimited funding potential of payroll financing. Your available funds are based on your sales, so as you grow your ability to access cash grows with you.
After working so hard to develop your staffing company, you owe it to yourself to pursue payroll funding and set your company up for a lucrative new year.
Factor Finders provides payroll funding support to temporary staffing agencies in a variety of industries. Learn more about our factoring programs for staffing companies.
Read more about Starting a Staffing Company:
When Your Staffing Company is Denied for Bank Loans
7 Ways Staffing Companies Can Improve Cash Flow
Is Your Staffing Company Ready to Grow?