When searching for staffing agency finance, you have probably run across accounts receivable factoring, a type of funding in which you sell your accounts receivable to the factoring company for a cash advance. Your clients then pay the factor directly.
Firms of all sizes and in all stages of their life cycle can receive accounts receivable factoring, whether you are just starting a temp agency or established in the field, and whether you have five clients or 50.
Funding is available for firms in any staffing industry, whether it is light industrial, administrative, IT, construction, health care, legal or clerical. Many factoring companies also provide factoring to companies outside the staffing industry, as well.
Factoring aids your staffing firm by providing quick and easy cash to fund your business in an industry in which companies often suffer from cash flow gaps.
There are typically eight easy steps to receive accounts receivable factoring.
- Contact your factor’s sales department.
- Your sales representative will collect information about your staffing business.
- Complete a credit application form and provide client information.
- Your factor performs a credit check on you and your business.
- Your factor approves your credit.
- Your factor meets with you to discuss rates, terms and conditions.
- Your factor collects additional information as needed.
- Your factor provides you with a draft contract that includes terms, conditions and rates.