Factoring for Staffing Can Benefit Your Business
For temp staffing agencies, cash flows can be unstable and disruptive. It can be uniquely difficult to manage so many workers, all with different positions and different payment requirements. This is made harder by the fact that contracts are often fulfilled so far in arrears.
In other words, even though temp workers are usually paid soon after shifts, staffing agencies have to wait for their purchasing companies to process and submit contracted payments. This delay often leads to serious problems with cash flows.
And, if these problems are not sorted quickly, temp workers may have to go without their salaries. Clearly, this is not a viable situation and many temp staffing agencies turn to factoring agents to help them stabilize cash flows.
With factoring for staffing, a temp agency allows a factoring agent to serve as ‘middle man’ between itself and the customer. The agency or service buys the invoice for the contracted temp work, at a reduced price. It is then owed this money by the customer, so the temp agency can step out of the picture altogether.
Making It Work for You
If you own a temp agency, and you need a more reliable way to access the money made from temping contracts, this could be a great choice for you. The factoring ‘middle man’ will pay you for the invoice a few days after it has been created. So, you will get the money much more quickly than if you had to wait for the customer to process the payment.
The benefits are clear for all parties. As the temping company, you get to pay your workers on time and avoid complicated cash flow problems. The customer paying for the work is granted enough time to properly process and submit the payment. And, the factoring for staffing agent takes a percentage from your invoice sum.
With support from the right factoring firm, the process is fast, efficient, and hassle free. In fact, many companies choose to use this kind of service because it frees their resources up for other aspects of the business.
If a temping agency does not have to spend time chasing up invoices, it can focus on streamlining communications with both workers and customers. It can concentrate on broadening its recruiting policies and modernising its application processes.
Choosing the Right Factoring Agent
If you are considering factoring for staffing, you need to pick an agent or firm that is right for you. This usually means searching for a factoring company that has experience of dealing with your type of industry. There are all kinds of agents around these days, both large and small, so it is important to carefully assess your options.
With the help and support of Capital Funding Solutions, your business can enjoy rapid access to funds whether it is based in Florida, Texas, New York, Georgia, Michigan, Virginia, or beyond. We will handle accounts receivable on your behalf, so that you can focus on getting temp workers paid on time, every time.
Factoring For Staffing in Florida, Texas, New York, Georgia, Michigan, Virginia…