Staffing agencies are in demand right now. Businesses are positioning themselves for success as the economy reopens. Companies spanning all industries are turning to staffing agencies to fill in gaps in the workforce, but staggered payments on staffing invoices are causing strains on cash flow, creating challenges for staffing agencies who want to source candidates for open roles.
The Demand for Staffing Agencies
To understand the demand for staffing agencies, we have to go back to 2020, when most of the country was under the pandemic lockdown. Businesses shifted to remote operations and streamlined their staffing need. As the economy bounces back, businesses once again need to bolster their employee pools, but they do not necessarily want to immediately hire full-time employees. Using staffing agencies to replenish the workforce is more cost-effective, and the screening is done ahead of time.
Staffing and Cash Flow
Staffing agencies send invoices to the businesses that use their services, typically with staggered payment schedules of 30 days or more. While they wait for payment, staffing agencies still have to pay those people who are working for those businesses, source people for other positions, pay for advertising, and keep the lights on in their offices. It is not unusual for a staffing agency with lots of roles filled to still experience cash flow issues because they are waiting on payments from the businesses to which they supply workers.
Boosting Cash Flow to Meet Demand
Instead of worrying about cash flow and staring at the calendar while you wait for businesses to make payments on invoices, staffing agencies use accounts receivable factoring. When they do, they can turn their invoices into cash that can be accessed quickly. Factoring eliminates staggered payment schedules and boosts cash flow, so staffing agencies can make payroll, cover overhead, and expand their operations.
New Century Financial offers the most comprehensive accounts receivable factoring services nationwide. We will turn your unpaid invoices into cash and make funds available within 24 hours. Additionally, we put you in control, so you can choose which invoices or parts of invoices get factored. Boost cash flow for your staffing agency so you can meet the growing demand from both the private and public sectors. Contact New Century Financial today.