Staffing agencies are unique businesses that operate on tight margins and often face cash flow challenges due to the time it takes to get paid by clients. One solution, to these challenges, that has become increasingly popular among staffing agencies is invoice factoring.
Top 5 Reasons Staffing Agencies Use Invoice Factoring
Here are the top 5 reasons why staffing agencies use invoice factoring:
1. Improved Cash Flow: Invoice factoring provides immediate cash flow by allowing staffing agencies to sell their outstanding invoices at a discounted rate to a factoring partner. This improves cash flow and helps keep the agency’s operations running smoothly.
2. Streamlined Accounts Receivable: Staffing agencies also enjoy the ability to hand over the responsibility of collecting outstanding invoices. Instead, the factoring partner takes this responsibility, allowing the staffing agency to focus on its core business operations.
3. Flexible Funding: Factoring companies provide funding based on the value of outstanding invoices, so as the staffing agency’s business grows, so does the amount of funding available to them.
4. No Debt Incurred: Invoice factoring is not a loan, so there is no debt incurred by the staffing agency. This means no repayment schedules or interest payments, which frees up more funds for business operations.
5. Lower Costs: With invoice factoring, staffing agencies can request lower costs from suppliers and vendors. Accessing working capital on the same day invoices are created, instead of waiting weeks or months for payment, allows staffing agencies to take advantage of early payment or pay in advance discounts offered by vendors and suppliers.
Why Invoice Factoring for Your Agency?
Learn the top reasons why staffing agencies partner with Porter Capital for invoice factoring.
A Flexible Solution for Staffing Agencies
Overall, invoice factoring is an effective solution for staffing agencies looking to improve their cash flow and manage their accounts receivable. With flexible funding options and the ability to streamline accounts receivable collection efforts, it’s no wonder why staffing agencies are increasingly turning to invoice factoring to help support their business operations. With greater control over when you get paid, staffing companies can invest in marketing, pay for advertisements to find new clients, and have enough cash to cover payroll. Porter Capital works with staffing agencies nationwide to provide a more flexible financing option than traditional business loans.
Choose Porter Capital Corporation for Invoice Factoring Services
Invoice factoring is a practical solution for businesses experiencing cash flow issues. If your business struggled while waiting for invoice payments to arrive, work with Porter Capital to receive your money within 24 hours. We buy out invoices from your clients so that you can see 85-95% of the invoice value quickly.
Whether your company needs new equipment, is short on funds to pay employees or has bills to cover, we provide funding for all the ways you do business. Our company has three decades of experience in the financial industry, so we have the expertise to eliminate obstacles and help your business grow accordingly. You can reach out to Porter Capital to get started with our invoice factoring services and request a free quote online today.
