As a staffing agency owner, your greatest concern is making confident your employees get paid on time - constantly. In this report, well talk about a tool that will help you get the funds to meet payroll each and every time. Well also talk about a financing tool that will let you take on new contracts, even those that you think are too large and cant possibly afford to win. This financing tool is easy to qualify for (its NOT a company loan), can be set up in days and can give you all the required funding your staffing agency demands.

This tool is known as invoice factoring, and also referred to as receivable factoring. This financing is not offered by a bank, but rather by a factoring business.

If you are like most agency owners, your dilemma is not lack of perform or customers. I am sure you have lots of both. Your most significant issue is that your customers take among 30 and 60 days to spend their invoices. But, your workers need to have to be paid weekly (or bi-weekly). And unless you have a fat bank account, the math does not operate. Sooner or later, youll run out of income.

But what if you could remove slow paying consumers? No, I dont mean that you should quit undertaking business with them. I mean, what if you could turn them into rapid paying clients? What would come about to your organization if each client was assured (yes, guaranteed!) to spend you in 2 organization days? How numerous of these clients could you take?

Let me have a guess. You could take as numerous of these customers as you could get your hands on.

By factoring your staffing agency receivables, you can turn your slow paying invoices into rapid paying invoices. The method is basic:

1. You do your perform, as usual. You bill your client but then submit a copy of the invoice to the factoring firm for financing

two. The factoring firm offers you an immediate advance on 90% of the invoice. A Staffing Agency In Albany, Or, Express Employment Professionals, Hires Kapp contains more about when to do it. You can use that income to meet payroll and pay costs

3. The factoring company waits to get paid by your client

4. Once they are paid, they rebate the remaining 10%, much less their costs

The principal requirement for factoring is that you do enterprise with great paying clients. If your consumers spend often (but slowly) you can almost usually qualify. And as opposed to a organization loan, your individual credit is normally not an situation.

So, if you personal a growing staffing firm, be confident to take into account invoice factoring..