1st Commercial Credit, LLC has helped a startup staffing agency with financing invoices generated weekly on credit terms. Many staffing companies find it challenging to grow without some type of financial backing when their customers demand credit terms that may extend out more time than anticipated.
1st Commercial Credit establishes accounts receivable factoring for startup staffing agencies. A recent new staffing client that set up invoice factoring services starting with zero sales has grown to $10 million in accounts receivable balances within its first 18 months of business. The client invoices hospitals and Vendor Management Systems representing the healthcare industry.
Raul Esqueda, President of 1st Commercial Credit, LLC says, "I am very impressed with the growth our staffing client has had, we fund many startup staffing agencies but never has one grown exponentially like this. Invoice factoring is the perfect financial instrument during growth. Our credit limit facilities are based on the payor's financial strength, not our client. A company can have a newly formed company, one day in business and qualify for funding as long as the payor/buyer is credit worthy. I do not know of any other financial solution that can approve a company with zero sales and grow into a $10 million dollar line in 18 months."
A temporary staffing agency with a good sales team can bring on new clients every week. The challenge is to continue offering credit terms while staying current with payroll, taxes and expenses during the growth cycle. Staffing agencies have turned to factoring companies because it delivers predictability and consistency in payable obligations.
1st Commercial Credit also offers a unique invoicing software that saves clerical hours by importing time sheet data into the invoice, eliminating manual input. It also exports payroll reports that is sent to the client's payroll company or administrators.
AUSTIN, Texas, March 23, 2023 /PRNewswire/