Staffing Agencies are a crucial part of the economy
rebuilding itself. Employers would
rather use a temp-staffing agency for a number of reasons, the most important
being that it is always better to rent an employee before actually hiring.
Staffing Agencies can experience sudden growth periods,
which some may not be ready for, when it comes to paying new employees. In most cases, the Staffing Agency is
required to provide the talent, and then Invoice the employer for the hours
worked. However, the staffing agency
must pay their staff every week or every other week.
This can create a cash-flow concern, if the payroll is
larger than the current Invoices which have been paid.
One of the ways small Staffing Agencies have eliminated this
problem is to “factor” their Invoices.
This is when a company sells its Invoices for immediate working
capital. The Lenders make money by
charging the small business owner a fee for providing immediate cash. (All fees are 100% tax deductible) The Lenders also provide assistance in making
sure the small business owner is doing
business with reputable companies who will pay their Invoices in a
timely manner.
The fees can be negotiated and usually there is no need to
sign an on-going contract. The decision to factor a Staffing Agencies Invoices, usually
is dependent on the credit worthiness of the small business owner’s clients.
This is the way small staffing companies have become “big”
staffing companies. When you have
control over your cash flow, you can expand your
business.
Invoice Lines of Credit transactions also work well for manufacturing companies, suppliers, and commercial construction Invoices. Usually, financial statements are not required. Setting up an Accounts Receivable Line of Credit "before" you actually need it, is a safe and wise decision. Visit now, short app only six questions: AR Invoice Line of Credit
