Factoring Services for the Staffing Industry
Invoice factoring services help staffing companies of all sizes close the gap between payments and expenses. Whether you are recovering from financial difficulty or preparing for future growth, use factoring services to meet your business needs.
Staffing factoring services can take you to the next level! Request a free quote today.
What are invoice factoring services?
Factoring services for staffing companies are an alternative to taking out traditional loans that create debt and are often insufficient to respond to changes in your business. Invoice factoring is the business-friendly solution.
The factoring process is simple and flexible:
- Provide copies of your staffing invoices to the factoring company.
- The factor will verify your invoices and advance up to 90 percent of their value.
- Continue doing business as usual; the factor will work with your clients to collect payment.
- Receive the remaining invoice amount when paid, minus a small factoring fee.
Benefits of Staffing Factoring Services
For a busy temporary staffing company, factoring services offer a number of time- and money-saving benefits not readily available through other financing options. The factoring relationship is just that – a partnership between your company and your factoring company to transform your cash flow and your business for future success.
No volume limits
There are no minimum or maximum requirements to factor your staffing invoices each month. You need only factor the amount you need to solidify your cash flow and cover expenses, and there are no penalties for factoring different amounts each month. Your funding limits are dictated by your sales – the more you sell, the more you can factor!
Low credit programs
Unlike the strict criteria set forth by banks, you can be approved for staffing factoring services even if you have a low credit rating. Factoring decisions depend on your customers’ creditworthiness, allowing factoring companies to provide you with a greater range of options to rebuild a solid credit score.
Most factoring transactions are completed within 24 hours of invoice verification. You can receive funds via same-day or next-day bank transfers, depending on your needs and your factoring company’s structure.
Applying for invoice factoring services is fast, simple, and free! Submit an application along with your business information and invoices you want to factor and begin factoring in as little as 3 to 5 business days.
Administrative Support for Factoring Services
In addition to the benefits listed above, another significant advantage of staffing factoring services is the back office support you can expect from your factoring company. Successful operations depend on these critical functions, but they can be labor-intensive and make up a large portion of your operating expenses.
Many factoring programs include a number of administrative services without additional fees. You can take advantage of any combination of these to make your money work harder for you.
Credit and Background Checks
Working with customers is easier and more rewarding when you have total confidence in their reliability. However, running credit checks on current and prospective customers takes time and can be very expensive depending on how many customers you have – and how often you verify their creditworthiness. Your factor will run these key reports when they first begin working with your account and periodically thereafter to head off any potential issues.
When you begin using factoring services, your factoring company will begin collecting payments for the accounts you choose to factor – and they can take care of the transition! With your agreement, the factor will notify your customers about changes in remittance and should provide you with a sample of that notice. Speak with your factor about their specific notification process.
Another time-intensive exercise is chasing down payments from customers. Spend less time on the phone and more time building your company by allowing your factoring company to collect on your behalf. Your account manager will work with the customer to receive and process payment according to the terms you established with the customer. If an account becomes delinquent, your factor will also pursue advanced collections up to and including a demand for payment should that be necessary.
24/7 Online Reporting
Use your factor’s online reporting system to track daily payments, funding transactions, and other necessary information to keep your records straight. Your unique login will give you access to your account status in real time, and you can check reports anytime and anywhere.
Call 1-855-EZ-FACTOR to learn more about staffing factoring services!
Ultimately, the greatest benefit of using staffing factoring services to support your company is the peace of mind that comes with cash flow freedom. Take control of your business’ finances – and future! – with Factor Finders’ competitive invoice factoring programs. Contact us today to get started!