Factoring for Staffing Agencies
Alliance One will help you make payroll. Is the lack of cash-flow preventing you from hiring on new employees? What is the factoring process and what can you expect?
As a temporary staffing company, we know that having positive, consistent cash flow is the lifeline of your business, as you have weekly payroll needs. Alliance One has been factoring for employment agencies for over 25 years. The more your company grows, the money you need to pay your staff. It's good problem to have but it's still a financial problem that you will need to address.
Your payroll cost will most likely be the largest expense for your company; the need for cash-flow is most important in all business but it's especially true in the staffing industry.
How Can Invoice Factoring help you make Payroll?
When you run a staffing company, you must have cash-flow. You most likely pay your staff weekly or on a bi-weekly basis. Your customers typically pay their invoices in 30 or 60 days. As you know, it is very difficult to float many weeks of payroll while waiting on your customers to pay you. All business need cash-flow to survive and staffing company burn through cash-flow faster than most other industries. If and when you obtain a new client, how are you going to pay your new employees? If you are plush with cash, you would be here right now. If you are like most companies, you are going to need financial assistance in growing your business. You can tap into your personal savings or a line of credit to gap the time from the day you invoice to the time you get paid. The other option is to factoring your invoices, so you are paid in 24 hours, not 60 days. Our factoring program is a debt free option and we do not charge an APR on top of the factoring fee. Invoice financing for staffing companies is fast alternative method to a bank line of credit. When you sell us an invoice, we verify that the services have been rendered and then send your money within 24 hours.
Should you Factor your Invoices or apply for a Bank Line of Credit?
Traditional bank loans, usually do not work for staffing companies. A line of credit is normally based off of your business tax returns, so when you need to hire more people, the money made, will not reflect until the following years tax return; so you will always need more than what the bank says you can have. If you were to onboard on a new customer, where they require you to supply them with five employees, this is great for you business but there is a good chance that you have depleted your line of credit, using it to make payroll for this one customer.
When you use invoice factoring to pay your staff, you are simply selling your invoices for each customer on a weekly basis. We advance you up to 90% of the invoice face amount within 24 hours. We hold back the rest of this amount in your reserve account. This money is sent back to you, once your customers pays their invoice, less the invoice factoring fee. As your company grows, we grow with you and when you need more money, we will provide it.
Staffing Agency Factoring Q&As
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Is Staffing Factoring going to be the right fit for your business?
If you are want to eliminate bad debt, grow your business, looking for positive cash flow and maybe even pay yourself; then invoice factoring can be your ticket to Financial Freedom.
As a staffing agency, payroll funding is crucial to keep your doors open. By the very nature of the business, staffing companies will always have an ongoing need for payroll funding. Staffing agencies usually pay their employees on a weekly or on a bi-weekly basis. Are you waiting 30, 60 or even 90 days for customers to pay their invoices? If so, this will cause a serious cash-flow problem.
Here at Alliance One, we understand your financial needs; we specialize in invoice factoring for staffing agencies. We provide you with a payroll funding solutions that is debt free. We know that you are turning to an invoice factoring company as a possible solution to making your payroll. Hoping that a customer makes a payment is not the way to go and constantly calling your customers asking about payment status can be annoying to you and your customers. If this is your implemented system and it has been working for your company in the past, aren't you tired of hoping and hunting down your customers to expedite their payment?
As your invoice factoring company, we want you to know that we have you covered? Alliance One wants to be the funding company for your staffing agency. There are many invoice financing companies out there, what makes one company the best factoring company for you business? It's when you have 100% confidence that your money will always be there when you need it. If there is ever an issue, it's you knowing that your account representative will be there to help you. As a direct lender, we do our own underwriting in-house, your invoices get approved, in most cases the same day. Let us help you reach your goals; you worry about growing your business, and we will make sure you are always funded on time. You no longer have to hope your customers pay you in time, when you factor your accounts receivable to us, you are always one day away from being funded.
Alliance One is the leading factoring company for staffing agencies, we know the industry better than anyone. Get your free non-binding quote today or give us a call and speak to a real person, we still believe in great customer service.
HOW INVOICE FACTORING WORKS
