HolzmanThomson889

As a staffing firm manager, your biggest problem is making sure your employees receives a commission on time - always. In this specific article, well discuss an instrument that will help you get the funds to meet payroll everytime. Well also speak about a financing tool that will let you take on new agreements, even those that you think are too big and cant perhaps manage to win. That money device is simple to be eligible for (its NOT a company loan), can be create in days and can give you most of the necessary funding your staffing organization requirements.

This device is known as invoice factoring, and also known as receivable factoring. This funding is not offered by a bank, but rather by a factoring company.

If you're like most company owners, your condition is not lack of work or clients. I am sure you've a lot of both. Your biggest problem is that your clients take between 30 and 60 days to cover their debts. But, your employees must be paid weekly (or bi-weekly). And until you have a fat banking account, the z/n does not work. In the course of time, youll go out of money.

But imagine if slow paying clients could be eliminated by you? No, I dont imply that you should stop doing business with them. I mean, imagine if they could be turned by you into quick paying customers? What would eventually your business if every client was guaranteed (yes, guaranteed!) to cover you in 2 business days? How many of these clients would you get?

Allow me to have a guess. You could simply take as numerous of the customers as you could get your hands on.

By factoring your staffing firm receivables, your slow paying invoices can be turned by you in to quick paying invoices. The procedure is simple:

1. You do your projects, as usual. You bill your client but then send a copy of the bill to the factoring company for funding

2. The factoring company provides an immediate advance to you on 3 months of the invoice. You should use that money to generally meet payroll and pay costs

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

4. When they're paid, they discount the remaining 10 %, less their expenses

The key requirement for factoring is that you work with good paying clients. You are able to typically qualify if your visitors pay often (but slowly). And in place of a company loan, your individual credit is generally no problem.

Therefore, if a growing staffing company is owned by you, make sure to consider invoice factoring. close window