Understanding the details and proceeding with temp staffing factoring offer valuable benefits to the staffing firm. Factoring generally provides cash more quickly without the hassles of financial reporting review. For example, a traditional lender usually asks and takes significant time to review the staffing firm’s financial statements and tax returns, whereas a factor usually doesn’t ask for that information.
“A factoring company generally is more tolerant and understanding of a staffing company’s needs,” he says. “Also, if you have a great relationship with your factor, there is some room for negotiation. So if you need more money than your contract specifies, you might be able to get it from a factor whereas you wouldn’t get that from a bank.
“Factoring companies are competitive and want to keep your business, so they’ll generally consider requests like these more than a bank would. Factoring is really such an easy process, and the benefits are many, especially for staffing companies.”