Temporary staffing agencies are one of the most common industries that factor their accounts receivables. It’s not easy for some businesses to get a bank loan, so financing your accounts receivable is a good alternative. Factoring your staffing receivables is a great way to get the money you need to meet payroll and other expenses as soon as possible. The staffing factoring process is quick and easy to initiate and includes many benefits so you can stop stressing over slow paying clients. Here are a few benefits to factoring your staffing receivables:
Staffing Receivable Factoring Benefits
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After the initial application process, you can be funded within 24 hours to meet payroll or cover any other expenses you may have. Never have to worry about cash flow problems again while financing your staffing receivables.
Simple application process
The application process is quick, easy and requires little paperwork. Once you provide some basic information you will be on your way to getting approved. The items you must provide include the application, aging report, customer list, credit limit request, invoices you wish to factor, Articles of Incorporation and the signed factoring agreement. The approval process takes 3-5 business days and you can receive your money within 24 hours of approval. Once you are a returning customer, you can be funded within 24 hours in some cases.
Debt free
Staffing factoring does not create debt because there is nothing to pay back. Factoring is simply selling your accounts receivables to the factor who then collects payment from your clients. The factor is advancing you money that is owed to you, not giving you a loan. A small amount is placed in a reserve, which is released to you, minus a small factoring fee, once the factor collects payment from your clients. Since you are getting money that is already owed to you at an advanced rate, no debt or payback process is involved.
Grow your business
Factoring unpaid invoices can shift your focus from cash flow headaches to growing your business. With extra cash on hand you can now focus your time on taking on new clients and projects instead of worrying about cash flow problems. The factor will often times handle the collection process as well, so your employees can focus on other projects.
No minimums or maximums
Factoring your staffing invoices provides flexibility to your cash flow. While factoring, there are no minimum or maximum amounts you are required to factor each month. This simple process allows your company to only finance receivables when needed.
You don’t need perfect credit
You are still eligible to factor unpaid invoices if you have little or no credit. Factoring companies look mostly at the credit of your clients during the approval process. Financing receivables can get you the extra capital you need to pay down existing debt.
Call us today to begin factoring your staffing receivables and start receiving these great benefits! 844-299-3206
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