Take Control Over Your Staffing Invoices

/in /by
Not having enough working capital for your business because of unpaid invoices can be tough on your business. In the staffing industry, payroll has to be on time, every time. So when your business doesn’t have the funds to cover payroll, that leads to problems. It is important to be firm on these types of rules in order to always have the cash flow you need to grow your business. Here are some tips to make sure your open invoices are taken care of. 

1. Check on your open receivables often
By knowing how many open receivables you currently have, and checking in more often, you ensure that nothing slips through the cracks. Being aware of your business’s outstanding payments on a daily basis means you won’t let your customers get away with not paying their bills for a longer period than if you’d only check in on your accounts receivables once a month.

2. Remind your customers about their outstanding bills
Be polite but firm when reminding your customers about unpaid bills. If you see a customer’s due date is coming up, send them a reminder since it’s easy to misplace or set aside a bill and forget to take care of it. Reminding your customer about the due date makes it more likely they will pay on time and shows you are on top of your invoices.

3. Follow up on the oldest unpaid invoices first
The older an invoice is, the harder it is to collect so going after older unpaid bills first is best. Organize your outstanding invoices by order of oldest to newest invoice and work down the list, tackling the newest unpaid invoices last. By doing this, you guarantee that no invoice ever gets to a point where receiving what’s owed to you is pretty much impossible.

4. Be specific about when payment is due
By giving your customers a specific date within which the bill is due, you are giving them a time frame and deadline, and they will probably respond better to it and pay the bill within the allotted time. Telling them their payment is due within 30 days gives them a firm time period within which they need to pay their bill and doesn’t allow for any dithering.

5. Charge an interest fee
This gives customers a reason to pay their bills on time as they want to avoid paying more on top of their outstanding payment. Be sure to inform customers about late fees up front and remind them in the invoice about these fees accruing if payment is late.

6. Provide incentives
Besides charging a late fee to encourage customers to pay on time, a positive incentive for customers who pay early may also be a good idea. You could offer a small percentage discount if a customer pays within an “early” time frame, or offer future discounts, credit or gift certificates so a customer will want to pay their bills early and appreciate the reward your business extends.

When All Else Fails

By following these guidelines, your business can avoid long periods without get paid. If your business cannot avoid these issue we can help. We offer staffing factoring to staffing agencies across the country. Staffing factoring offers advances payments to staffing companies that are in need of working capital. Give us a call or fill out a form to learn more information.

Top Three States for Staffing Company Owners

/in /by

Staffing agency owners know better than anybody that succeeding in the industry is no easy task. The ever-changing economy, legal red tape and tax regulations all make administering a staffing company a tricky venture.

But did you know that it is a tougher venture in some states than in others?

It is true—there are certain states where running a staffing firm is easier, both economically and legally. Check out this list of the top three states to own a staffing agency.

1. Texas

As they say, everything is bigger in Texas—including the benefits of owning a staffing agency. Firstly, due to the sheer size and robustness of the Texan economy, the staffing agency has a huge presence in the workforce. According to the American Staffing Association (ASA), the Lone Star State employs over one million temp workers per year, each average nearly $35,000 as an annual salary. The staffing industry itself garners just over $12 billion per year. Texas has a very influential Staffing Association that lobbies in the interests of staffing firms very efficiently, assuring that legal impediments do not hinder staffing companies from expanding.

2. Georgia

Georgia has a slew of veteran staffing company owners currently participating in the state legislature, and accordingly, there are few laws in effect that hurt the staffing industry. The Peach State, despite being mid-sized compared to Texas, often exceeds $5 billion dollars in annual sales, according to ASA.

3. Florida

The Sunshine State places few restrictions on the staffing industry and also have skillful lobbyists that have prevented unfriendly legislation from being passed, according to Staffing Industry Analysts. Florida ranks in third, however, because their temp staffing employees rake in slightly less on average than workers in other states. Nonetheless, with little red tape, Florida is not a bad place to own a staffing agency.

Texas, Georgia and Florida, for both their economies and their laws, make up our list of the top three states for staffing company owners. Are you looking for the top method of alternative finance in order to help your staffing company up its cash flow and expand? If so, talk to us—we serve tons of different types of staffing firms and can help your agency fix its financial situation.