Waiting for employers to pay staffing agency invoices can hold up business operations, especially for agencies that are trying to expand quickly. What if an employer expects 90 days to pay, but your agency needs the money now? This is where invoice factoring comes in.
Invoice factoring for staffing agencies is a type of business financing. You can sell your outstanding invoices in exchange for payment advances. This means you still have the working business capital you need to move forward.
Scaling is just one way staffing agencies can leverage invoice factoring for their companies. Discover four more ways agencies can benefit from staffing factoring.
1. Leverage Fast Funding for Your Agency
Invoices function as a type of funding collateral, so the financing approval process is much faster than applying for a traditional bank loan. You don’t have to spend time and money to write a business plan or loan proposal, either.
Imagine thousands of dollars worth of capital trapped in a pile of outstanding invoices? Instead of cutting much-needed resources from your agency, accounts receivable financing can help you get a loan in 48 hours or less!
2. Acquire More Staffing Agency Clients
You don’t want to let outstanding invoices get in the way of your growth. A fast infusion of cash will help you invest in the marketing strategies necessary to attract more clients.
A steady clientele is necessary for consistent cash flow. If a client hasn’t paid, you don’t have to worry because there are several new client projects in the pipeline.
3. Keep Critical Relationships with Staffing Agency Vendors
When your staffing agency is tight on capital, even one outstanding invoice can cause a domino effect. If you’re late on paying your vendors because your clients are late on their payments, that’s a problem.
Don’t let this problem spiral out of control. Apply for invoice factoring right away, so you have enough capital to pay your vendors. This is critical for maintaining strong business relationships with vendors.
4. Affordable and Convenient Options for Agencies and Clients
There are various loan options for businesses. However, many loans come with high interest rates. High-interest rates can make it nearly impossible for new agencies to get ahead. Invoice factoring, on the other hand, doesn’t keep agencies in an endless cycle of paying off interest rates.
You only have to pay minimal fees to your financial provider, and you get a rebate on any leftover funds once your client has paid. By selling your invoices to a financial provider, your clients also benefit from easier payback terms. This is essential for client relationship management.
Discover the Benefits of Invoice Factoring for Staffing Agencies
Don’t let those unpaid invoices pile up and derail your staffing agency’s growth. Discover the benefits of invoice factoring for staffing companies, vendors, and clients. Keep this guide handy as you consider your business financing options.
Are you ready to discover the benefits now? Get your invoice advances in as little as 1 to 2 days. Learn more and get the process started today.
Checking for pre-approval will not affect your credit score.