Does your bank manager make you feel like this?
Comedy legend Bob Hope quipped, “A bank is a place that will lend you money if you can prove that you don't need it.” Although a joke there’s an element of truth to his thoughts on a bank’s philosophy.
When Hope passed away in 2003 at the age of 100 his estimated worth was cited anywhere between $400 million to $1 billion. Even at the lower estimate, Hope would never have had a problem getting a bank loan. Like he ever needed it! Banks were probably throwing money at Bob Hope.
A mature staffing agency probably has a large savings account and can comfortably cover payroll without relying on receivables. This of course is the ideal situation. However, many staffing agencies have not yet reached this financial status.
For the growing staffing agency meeting payroll is critical to maintaining quality personnel and good reputation.
One option is to request a line of credit from your bank. Obtaining funds from banks can be difficult especially during a recession.
Then you have to determine how large of a line you will need. If you underestimate and the line is too small, you will have to go through the approval process again and pay any additional fees. On the other hand if your credit line is too big, you could end up paying fees on the unused portion.
This line of credit option may not be the right choice for smaller staffing agencies or faster growing firms. Banks generally lend money against hard assets, such as real estate. If so, you could be risking your home or business if a large client doesn’t pay. So much for "your friendly banker!"
HGS is self-funded meaning we use our own money, and not the banks. We don’t have to go to banks, cap in hand, and neither do you. Our assets come from private investors who want to partner with, and help, staffing agencies grow.
Unlike banks, good credit ratings or hard assets are not required. Instead we provide funding against your accounts receivables. We consider the credit rating of your clients rather than you or your firm. We purchase your receivables and take responsibility for collecting on that invoice for a nominal fee.
Being self funded we make faster decisions which can be critical to your situation.
We also offer additional services that banks are not in the business or position to provide. For instance, we offer free staffing agency marketing services with the sole intention to generate more inbound leads for our clients.