Funding works well for staffing agencies that have hit a stressful financial wall. Are you barely meeting payroll? Are you reluctantly turning away new business opportunities because of cash flow?
If the answer is “yes” to either question then our funding services will relieve some of that pressure. You will easily meet payroll commitments and funding almost always allows company growth. The service more than pays for itself immediately
Funding against your receivables is a great resource for staffing agencies that have great but slow paying clients. After your account has been established you receive payment for receivables within 24 hours. No more waiting anxiously for 30, 60 or even 90 days for payment. No more collections.
To work well, the agency should have profit margins of at least 15%. However, higher margins of 25% - 50% are more desirable.
Unlike banks, bad or poor credit on the part of the agency or owners is not a problem. We base funding largely on the credit rating of the clients and not the staffing agency itself.
For funding your receivables are used as collateral. Banks usually require hard assets as collateral for loans. This collateral could be real estate, in which case you could risk losing your home if a single large client doesn’t pay.
There’s no charge to set up an account. Funding fees can range from 1.5% to 3% depending on monthly volume and the quality of agency clients.
Considering improved cash flow and the ability to attract bigger and better clients the fees are a small price to invest. By receiving cash for your invoices within 24 hours, you are able to meet all financial obligations.
Improved cash flow helps your business grow or survive without incurring more debt at the bank. You are now in a position to offer better terms to larger clients and attract more business.
As part of our factoring service we also offer free staffing agency marketing. To our knowledge no other funding companies for staffing agencies partnering in this manner. We believe by helping your business grow, ours will grow automatically.
Call us today and let’s discuss your situation without obligation.