As your payroll funding expert, we understand your needs – Rates as low as 1.5% – up to 110% payroll funding ! We also provide good rates on insurance and workers’ compensation.
Most staffing agencies find themselves with cash flow problems. Cash flow problems will usually hit staffing agencies that are growing quickly. The most common cause for cash flow problems is slow paying customers. Basically, the agency has payroll expenses that have to be met on a weekly or biweekly basis. Revenues from law offices and corporate customers are tied to invoices that pay in 30 to 60 days. Invoice factoring for staffing agencies is an alternative for cash flow solutions.
Factoring solves the cash flow problem by accelerating revenues due from slow paying corporate and legal customers. A factoring company will advance funds using your invoices as collateral. This provides your staffing services company with the needed funds to cover payroll expenses and take on new business.
One advantage of invoice factoring over conventional loans is that it’s relatively easier to obtain. To qualify, a staffing agency has to meet these criteria:
- Company must be free of legal and tax problems
- Invoices must be to commercially credit worthy customers
- Invoices must be for completed work
- Invoices must be free of liens
Most invoice factoring plans are very flexible and grow with your business. Your financing line does not have an arbitrary maximum, rather it’s tied to your invoices and will grow with them as long as you invoice credit worthy commercial and legal customers.