Long Haul Trucking Company
Valve Importer PO funding
When it comes right down to it, a staffing company's biggest asset is its reputation. A personnel organization that develops a professional reputation for being reliable and supplying productive workers will be able to find more customers interested in contracting for its services. The staffing organization that is unable to exceed customer expectations will find it hard to take on new clients.
In order to grow, there are several elements that a staffing company requires and they all need funding to be effective. Your clients rely on your ability to recruit and train competent workers to be able to grow their own businesses. If you want to be able to expand your staffing company, you need to attend to several important operational details and develop them over time.
Your staffing company is not growing without more qualified personnel. One of the reasons why companies contract with staffing organizations is because of the high costs of doing proper recruiting. A staffing company is adept at finding and screening candidates and making sure that they fulfill the needs of the client. But recruiting costs money and an increase in recruiting can really put a crimp on the company budget.
The increase in recruiting costs accumulated by a staffing company are proportionate to the amount of growth the company experiences. A corporation that stretches its staff thin by asking one employee to do the work of three has the luxury of utilizing its personnel in a flexible manner. When a staffing company takes on three new clients, it needs to develop three new sets of personnel to satisfy the client needs.
Another key element to any staffing company is training. There are two levels of training that go into a successful personnel corporation. The primary training occurs when the company trainers are given the client requirements and must put those requirements into a comprehensive training class for the temporary staff.
The second level of training occurs when the staff itself is educated on the client's needs. An added expense that often goes unnoticed during training is the cost of turnover. A staffing company experiences a spike in operating costs when it starts to train a new recruit and then that recruit either quits, or shows no aptitude for doing the job. All of these costs add up and become quite expensive for the staffing company.
In order for any company to grow, it needs to enhance its marketing efforts. But marketing a staffing company is a very different kind of task. The staffing industry is run primarily on established relationships that take time to develop. New customers often find staffing organizations through referrals from satisfied clients. It is a process that can take a long time, which is why staffing company growth tends to be gradual.
Another high cost element to staffing company marketing is trade shows and seminars. Many successful staffing organizations will hold open recruiting sessions or set up tables at job fairs in their region to attract talent. These sorts of marketing tactics require a great deal of cash and planning to be pulled off properly.
The Dangers Of Bank Lending
Healthy growth for a staffing company is done gradually and slowly. The reason for this is because it takes time to recruit and train new personnel to meet client needs. The difficult part is planning the growth so that the company does not lose clients because it cannot deliver on its staffing promises.
Using bank lending to fund the growth of a staffing company can be a dangerous and costly venture. For one thing, bank lending requires precise planning, which can be extremely difficult for a growing staffing company to do. Another problem with bank lending is that it may take more than one loan to help the company reach its growth goals. After a while, the company has taken on a significant amount of lending debt and is now more focused on controlling costs than growing the company.
Asset-Based Financing Offers Gradual And Healthy Growth
A business loan from a bank may not be the way to go when it comes to funding the growth of a staffing company, but that does not mean that the company does not have options. As a personnel organization grows, it will gradually see an increase in invoiced sales. The snag comes when the customers responsible for that increase do not pay their bills on time. The staffing company is getting more requests from new clients, but it cannot fulfill those requests with its current cash flow.
Asset-based lending will take the gradual increase in business that is represented by the increase in invoiced sales and turn it into cash flow. 1st Commercial Credit is an international leader in receivables lending and we can show you how those past due invoices are actually your keys to success.
1st Commercial Credit Offers A Flexible And Natural Line Of Credit
1st Commercial Credit's factoring services for staffing agencies will advance your staffing company cash based on the face value of your invoices. It is a flexible form of financing that grows naturally with your company. As a staffing organization that has several different business elements to attend to during the company's growth, you will be bolstered by the improvements in cash flow that asset-based funding offers.
A bank line of credit is an arbitrary number that does not accurately represent the true growth of your staffing company. But an asset-based line of funding from 1st Commercial Credit will allow your cash flow to keep pace with your company growth. You will be able to implement the programs you need to grow your company and you will never have to worry about bank lending to fund your growth.
Invoice Factoring Is Easier Than Bank Lending
The invoice funding process through 1st Commercial Credit is much easier than borrowing from a bank. We have a two-page application online that you can use to get the process started. It only takes us three to five business days to approve your account and we can advance funds to an approved account within 24 hours of receiving a qualified invoice.
We do not charge any set-up fees, and we do not have any hidden fees of any kind. We also do not constrain you to any per invoice or per month minimums. We base all of our financial decisions on the credit score of your clients, which means that we never have to see your company's financial information or credit report.
All of our credit approvals are done online, which means that we never talk to your customers. As you are growing your staffing business, you can continue to cultivate the long-term relationships that will lay the foundation for your company's success. We invite you to contact 1st Commercial Credit today and let us show you how asset-based financing is the tool you need to grow your staffing organization successfully.