Staffing agencies count on a reliable, steady cash flow. In business, solid fiscal health relies upon how quickly a customer pays for services rendered. When you’re billing multiple invoices at once, it’s easy to see how profitable the business should be.
But when your accounts receivable is waiting…and waiting…on payments, your cash flow comes to halt.Theoretically, your company should be making money. Realistically, it can’t. Not unless clients actually pay their invoices.
That’s where invoice factoring comes into play.
The Basics of Invoice Factoring
As a business owner, you probably have a firm grasp on what an “invoice” is: the bill you send to a client or customer after providing a service.
A “factor” is a company that buys invoices. “Factoring” is the process of purchasing an invoice.
Thus, “invoice factoring” is the process of selling invoices to a purchaser (factor) and receiving payment quickly – possibly in as little as 24 hours. It is a viable option for creating cash flow for businesses.
Invoice factoring can be helpful for companies in the staffing industry. Most of the cash flow for these businesses is outgoing; payroll is a major business-related cost. Payments from clients, however, can take up to 90 days to receive.
Factoring can keep your company’s payments timely by keeping your cash flow consistent. No worrying about delayed payments by clients when cutting checks to your employees.
You are in Control
Choose the best options for your business needs. When working with an invoice factoring company, such as Bay View Funding, you can be selective about which invoices you wish to factor. This gives you more flexibility than other types of loans.
Growing a staffing business can feel impossible when you’re playing catch-up due to clients’ lagging payments. Meeting the needs of payroll and attempting to expand your business can quickly change from an adventure to a chore.
In the staffing industry, incoming bills must be paid quickly. Factoring can put cash in your bank account in as little as 24 hours.
Based on how much capital your company needs, how soon it’s needed, and the duration for which the cash is needed, using a factor may be a valid option for you.
Bay View Funding has over thirty years of knowledge and experience with many industries, including staffing. Let us help you reach your long-term business goals.
Our veteran team of factoring professionals is standing by to help you get the answers you need. Contact us here or call (888) 299-9993.