Staffing agencies factoring rely on cash flow and immediate access to working capital to maintain and grow operations. From providing staff for specific jobs, to sourcing new talent, courting new client accounts, and covering payroll, staffing agencies need strong cash flow to cover expenses.
Instead of waiting on clients to pay invoices with staggered schedules, staffing agencies use invoice factoring to turn receivables into cash, accelerate cash flow in general, and enable growth opportunities. However, no two factoring companies are alike, so what should staffing agencies look for when choosing a factoring company?
How Fast will I Receive Money for My Invoices?
Perhaps the biggest concern when choosing a factoring company is how quickly funds will be made available? Some factoring companies can take weeks to convert invoices into cash. Others will promise funds within a week or five working days. New Century Financial converts unpaid receivables into cash and makes funds available within 24 hours.
Are There Any Contracts?
Many factoring companies require staffing agencies to sign long-term contracts, which is one way to build customer retention. At New Century Financial, we believe that offering comprehensive factoring services to staffing agencies and providing tailored solutions builds more customer retention than locking businesses into long-term contracts. Staffing agencies can use our factoring services as much or as little as they need.
Transparency is Important!
Beyond contracts, it is important for staffing agencies to read the fine print, even if they are using factoring for a one-off boost in cash flow. Some factoring companies will whittle down receivables by tacking on hidden fees. New Century Financial offers complete transparency with staffing agencies, so there are no hidden fees attached to our services.
Do I Have to Factor All of My Invoices?
When staffing agencies seek out factoring services, they often have no say in what they can factor. Factoring companies typically require entire invoices or batches of receivables. At New Century Financial, we believe our clients should have more control over the factoring process. For these reasons, we let staffing agencies take the wheel and decide which invoices – or parts of invoices – get factored.
How Much Support Will I get?
Many factoring companies, payroll funding services, and similar businesses like to automate things as much as possible. Unfortunately, many staffing agencies may run into a wall when they have a question about factoring or about their accounts that cannot be easily answered by an automated menu. New Century Financial provides 24/7 support with human account managers who will listen to your questions and provide the solutions you need.
If your staffing agency wants to accelerate cash flow with comprehensive support and no long-term contracts, contact the experts at New Century Financial today.