When a clerical company provides a staff for a customer, the clerical company takes care of payroll and everything that comes with it. The clerical company is also responsible for human resources issues as well as training for new and existing personnel. It takes a huge financial responsibility off the shoulders of the client and allows the client to focus on core business activities.
One of the more significant changes in clerical work is the continued innovations being made in technology. Even with all of these new technological breakthroughs, it still takes a staff of qualified people to make sure that all of the clerical work for a company gets done properly. By utilizing a clerical staffing agency, the customer does not have to worry about investing in that new technology or training its staff to use it. All of that investment is placed on the shoulders of the clerical staffing agency, and that is a huge help to the client.
Clerical staffing agencies are well-prepared for any alterations to their payroll structure because payroll has always been one of the prime concerns for these kinds of organizations. A clerical agency is used to having to move personnel quickly from one job site to another, and that has forced these kinds of staffing companies to develop very flexible and comprehensive method of doing payroll that has served them well. The issue with payroll comes when the clerical staffing agency takes on more clients for longer-term projects and needs to fund an expanding payroll responsibility.
As a clerical staffing agency takes on more clients and for longer contract periods, the cash flow for that company should increase to meet payroll needs. But it is difficult to fund payroll when your past due invoice pile s growing almost as fast as your paid invoice pile. The financial responsibility for the staffing agency continues to go up, but the customers who take 30 to 90 days more to pay their bills are making it difficult for the staffing agency to meet payroll and training obligations. At this point, the staffing agency faces the very real possibility of taking on bank debt, or turning away new clients. But there is a financial alternative that every clerical staffing agency should be aware of. Payroll funding for staffing companies is an easy way to establish some type of a line of credit.
A business line of credit based on outstanding invoices is the most reliable way for a growing staffing company to fund its payroll needs and meet all of its other ongoing financial obligations. 1st Commercial Credit is an experienced staffing factoring company that will utilize your invoiced sales as collateral as a business line of credit. This is not a bank line of credit that adds interest debt to your company's bottom line. This is a flexible source of funding that will increase as your invoiced sales increase.
We advance you funds up to the full face value of your approved invoices to creditworthy clients, minus our lending fee. We can have your account approved and set up in three to five business days, which is significantly faster than any bank.