Do you have enough working capital on hand to pay your bills, and your staff on time? If you are cash flow challenged, have a healthy amount of outstanding invoices, and want to grow your temporary staffing agency, read on.
Your agency is capitalizing on the fact that many companies do not want to pay the high cost for permanent employees, but these same companies can take up to 90 days to pay their invoices. You may well be covering your advertising costs up front for these positions, along with all the other costs associated with operating your business. Since temporary staffing opportunities are on the rise, wouldn’t early funding of outstanding working capital be a huge benefit?
Invoice factoring can answer the working capital call for you. Having enough money to cover operating expenses and, most importantly, payroll, is the vital component to success. We have talked about employee happiness, and creating the best environment for your temporary staff through:
- Encouraging performance with competitive pay and an open door policy
- Providing extra compensation to encourage a strong work ethic
- Promoting group activities to get to know your employees
However, without a doubt, on-time payment plays a huge role in staff motivation! Cash flow management is made possible through accounts receivable financing. Factoring your invoices allows you to receive the funds you need to always make payroll, and other operating costs, on time.
To briefly recap, invoice factoring allows you to receive money today for invoices due to be paid in the future. Once you have established a relationship with your factoring company, you can receive money in as little as 24 hours after submitting invoices. Many factors also offer some form of payroll advance program. Bay View Funding excels in the area of payroll funding for staffing companies, and can supply funds up to two days faster than many of their competitors offering a similar service.
While invoice factoring can fundamentally help your company grow by helping you utilize your working capital quickly, it is important to remember the importance of cash flow projection in the overall equation. Cash flowing in must match or exceed cash flowing out, it seems obvious, but can be easily overlooked without careful planning. In basic terms, analyze how much your company is making, when bills need to be paid, and what you are left with once all your costs are covered. A surprising number of companies fall by the wayside because of a lack of adequate planning.
Bay View Funding offers an incredibly streamlined, simple process to accounts receivable financing, so approval is fast. Don’t let a cash flow shortage kill your business when you know you have plenty of money sitting in unpaid invoices. Invoice factoring, when combined with careful planning and accurate cash flow projection can most certainly help your staffing agency grow.