Long Haul Trucking Company
Clerical Staffing Agency
As the owner of a staffing company, you must maintain credibility with both your clients and your employees. This can be hard to do if you have trouble meeting payroll or you don't have enough cash on hand to offer clients open credit terms. In a tight economy, employers remain reluctant to hire permanent workers. That is good news for temporary staffing agencies, but it may mean that your company is growing faster than your working capital. Our factoring company, 1st Commercial Credit, can help by purchasing your accounts receivable invoices and converting them into immediate cash for your staffing agency.
Put Money in Your Company's Account in Days Instead of Months
When one of your temporary employees turns in a time card, he or she expects prompt payment. Some people are drawn to contract work because it often pays weekly. While you are required to pay your employee promptly, it could take one to three months to receive the money from your client. The lack of cash flow could prevent you from taking on more jobs because you don't have the funds to pay workers.
Factoring companies for temporary staffing companies understand your frustration. The average time to collect an unpaid invoice in the temporary staffing industry is 35 days. While that is shorter than some industries, it is long enough when you want to hire more workers and take on more new accounts. When you tap into the value of your unpaid invoices, you can turn a pile of paper into an immediate liquid asset.
The Advantages of an Accounts Receivable Loan
New temporary staffing companies are sometimes hesitant to apply because of the assumption that the business has inadequate credit to qualify. The main advantage of a Factoring loan is that your company's credit doesn't matter. Since we are purchasing invoices on money that is owed to your company, we only consider your customer's ability to pay us back. We ask you to forward us unpaid invoices from clients that have a good repayment history with your staffing agency. As long as we can verify the customer's information and your business credentials, your factoring loan will be approved.
We always provide an answer within one business day. After that, it takes three to five days to establish your account and less than 24 hours to fund it. You won't have to wait for set-up on any future accounts receivable loans.