Staffing agencies are keenly aware of the importance of cash flow to keep their businesses running smoothly. If you have a staffing agency which is obliged to wait for customers to pay their invoices, you may benefit greatly by arranging for factoring with an alternative lender.
Factoring can spur business growth
Factoring can do much more than just help you survive as a staffing agency, because it can actually help you achieve real growth. Since you will enjoy much more reliable cash flow, you can focus your business initiatives on doing more marketing for your agency, so that you become known to a broader audience.
Simple and quick financing
Whenever you apply for a business loan with a traditional bank, you can expect to wait weeks and probably months, and even then the likelihood is that you’ll be disapproved. Factoring works much more quickly than that, and the approval rates are much higher. As soon as you submit your unpaid invoices, funds are deposited in your bank account, and the only limit is in how many invoices you sell to the factoring company.
Consistent cash flow
Many businesses have suffered, and some have even been forced to close their doors because of inconsistent cash flow. With factoring, you can count on receiving immediate cash every month, as long as you can supply a factor with a steady stream of unpaid invoices.
Businesses involved with factoring typically find that the terms of their arrangement with an alternative lender are much more beneficial to their long-term health than having to repay a major loan. Since there’s no loan involved at all in factoring, you never have anything to repay, and you don’t need to put up collateral as surety for any kind of loan.
When you’re associated with a factoring company, it can help your office run much more smoothly, because they provide a great deal of assistance with invoice collections and with customer relationship management. When you have this kind of back-office support, your employees are freed up to concentrate more on the core tasks involved with your business.
Factoring with Proactive Funding Solutions
If you think factoring may be right for your staffing agency, we’d like to hear from you. Please contact us at Proactive Funding Solutions, so we can answer any questions you may have about factoring, and so we can help arrange for factoring with your business.