Invoice factoring is a fast and easy way to turn your invoices into cash flow. Staffing agencies in particular put themselves at significant risk when they have issues with cash flow, although obviously any company experiencing cash flow issues needs to address them as quickly as possible. Depending on the industry in which a staffing agency operates, the agency may have to pay very high salaries to its most qualified employees and contractors, which must be paid on a regular basis. After all, a staffing agency is only as good as its staff. Medical staffing agencies are particularly prone to this issue, as the high salaries commanded by medical professionals can put a real dent in the agency’s cash flow.
You have to pay your staff at the agency, regardless of whether or not you actually get paid by your clients. With staffing agency invoice factoring, you can tailor your factoring experience to your clients’ payment habits and schedule and make sure that your payroll doesn’t compromise your bottom line. At the end of the day, the staff at a staffing agency is always going to be its most valuable asset, and you want to pay them on time to keep them happy and productive. With staffing agency invoice factoring, you can do that quickly and painlessly.
Invoice Factoring Can Provide Cash Flow, and Fast
Staying above water and maintaining the expansion of your staffing agency tends to involve a fair bit of juggling, but with invoice factoring you can see cash flow coming in to help you meet your expenses and overhead. You can turn your outstanding invoices from expensive sheets of paper to cash flow with staffing agency factoring, selling them to a factoring company, which then assumes the risk of the account receivable and provides you with the funds you need to keep the business going. You need a financial plan to help you stabilize your cash flow and pay your staff, and the factoring company you choose to work with ought to provide a plan.
Using staffing agency factoring, you factor your invoices, using the money you’re owed to build your company. You’ll be transforming your invoices into assets. The factoring company advances you the value of your invoices, minus their service fee, effectively meaning that you get paid ahead of time, allowing you to tend to your expenses quickly without biting your nails over the money you’re owed.. The factoring programs generally don’t demand set-up fees, or those incurred by facilities. The best companies don’t have any hidden fees for you to worry about, either. They disclose all their costs up front so you know exactly how much of your money you’ll be seeing at the end of the day.