Another solution to cash flow problems is accounts receivable factoring. Factoring for staffing companies turns unpaid invoices into quick cash without a loan. It’s available to staffing agencies of all sizes and doesn’t depend on the company’s credit rating. Even new companies without a credit history can use staffing factoring to get quick funds.
How Staffing Invoice Factoring Works
Factoring companies for staffing agencies pair your company with the best factoring service for its needs. Your temp agency will see improvements in its cash flow without wasting another minute.
The staffing invoice factoring process is simple to initiate. Applying for accounts receivable factoring is quick, taking as little as three days. Companies simply provide a list of account receivables, the specific invoices to be factored and the company’s articles of incorporation. Once terms and fees are agree upon and the staffing invoice factoring agreement is signed, the factor can provide cash for as much as 90 percent of the value of the unpaid invoices within 24 hours. The remaining invoice balance, less the factor’s fee, is paid after the factor collects from your customers. Fees for staffing invoice factoring are generally low, less than two percent of the balance.
Factoring for staffing companies provides tremendous flexibility in managing cash flow. There are no minimum or maximum amounts, so companies utilize staffing factoring only as much as needed. This can be a great benefit for companies affected by seasonal staffing trends. The funds received can be used to meet payroll, extend better payment terms to clients and market the business.
Because factoring and managing cash flow are critical aspects of managing your business, working with a broker like EZ Factoring Companies is crucial to finding the best factoring firm. EZ Factoring Companies will help you partner with a company that understands staffing factoring in your industry and offers fair rates to help your business meet its cash flow needs.