Consistent cash flow is an integral aspect of a successful staffing agency. However, slow-paying clients can prevent you from getting your bills paid on time, keeping up with employee salaries, and growing your business. A reliable solution to this dilemma is invoice factoring, which allows you to receive payment promptly regardless of when your customers honor their accounts receivables. Here are some benefits of taking advantage of this form of financing.
Strengthen Cash Flow
Maintaining a steady cash flow allows you to keep your staffing agency office running to continue generating income. Invoice factoring helps you accomplish this by getting income into your hands right away. After your factoring application is approved, when you complete services, you send the invoices to the factor. In return, you receive payment promptly minus a factoring fee.
When you apply for a loan from a traditional financial institution, you have to submit an abundance of paperwork and then wait weeks or even months to hear back about the result. An application for invoice factoring is quick and easy by comparison. Your credit score is not an issue, as the factoring company is more concerned about the creditworthiness of your clients than that of your staffing agency. The amount of funds you can receive is only limited by the amount of your accounts receivables.
Unlike traditional bank loans, invoice factoring does not require you to take on debt. There is also no collateral involved. Instead, you are simply receiving an advance on your invoices.
Besides offering upfront payment for your invoices, you receive office assistance. The factoring company helps you with reporting of your accounts receivables, managing customer relations, and collection of unpaid invoices. This leaves you free to focus on running your staffing agency.
Grow Your Company
Uncertain cash flow causes stagnation in businesses, but when your cash flow is strong and steady, you can invest in marketing to grow your staffing agency. Invoice factoring can help your company not only survive but thrive.
For more advice on invoice factoring for staffing agencies, contact Nations Capital Financing.