Staffing factoring – how your business will benefit
The staffing industry provides a vital source of people across a lot of industries – from nursing and medical, IT, office or clerical, light industrial, and professional staffing to hospitality. Any business focused on people and their skills is complex and have its own unique set of challenges. Like many other businesses, it can be stopped short because of the gap between invoicing and payment from clients. The staffing industry is often faced with cash flow problems since it takes time to place temporary staff in positions, which need to fulfill the hours required in the role before the staffing agency can invoice the client. In the meantime, those workers need paying, as well as the many other costs that come with staffing – marketing, advertising, rent, agency employee salaries, and the list goes on.
Invoice factoring is fast becoming the preferred financing option in the staffing industry, providing agencies with credit when they need it most. It takes quite a bit of time to build up a staffing agency and staffing factoring can help with the growth of a business, by improving cash flow and freeing up time for marketing and sourcing of skilled people.
Using the services of a reputable factoring company that understands the staffing industry, has quite a number of benefits:
- It provides a steady source of working capital
- Funding can be set up and approved in a matter of days
- Competitive rates
- No protracted application process where many financial documents are required
- Flexible credit customized for the needs of the business
- Back office services available, reducing administration
- Factoring is not a loan, so debt is not added to the balance sheet
- Factoring companies can offer flexibility in terms of how much needs to be factored in and how often
Charter Capital is a factoring company that understands the staffing industry
At Charter Capital, we are committed to helping entrepreneurs realize their full potential. As one of the most well-known factoring companies in Texas, we understand the challenges that staffing agencies face. Our principals have been providing specialized financial solutions to small businesses everywhere since the late 1980s banking crisis that stifled traditional lending, and have served as the financial backbone for thousands of companies.