Staffing agencies are in great demand by businesses in every industry, as well as government agencies. From construction projects to software development, skilled healthcare professionals, management consultants, safety and compliance experts, and more, organizations are turning to staffing agencies to reduce costs and roll out plans for 2022 and beyond. Because of this, staffing firms are positioned to grow, which requires capital to source more candidates for roles, cover payroll, run marketing campaigns, and court new clients.
Achieving Growth Starts with Cash Flow
When staffing agencies want to expand their operations, they need ample capital. While loans may seem like the go-to method, the reality is the added debt and fixed monthly payments will only eat into revenue and prevent staffing agencies from reaching their full potential. Additionally, debt-based loans are subject to interest rate hikes. Staffing agencies can build up their own capital reserves for growth, but that requires a robust cash flow. When clients are issued invoices with 30-day, 60-day, and sometimes quarterly payment windows, revenue can seem sluggish. Staffing agencies need a way to accelerate cash flow so they can achieve growth, maintain their momentum, and avoid the restrictions and drawbacks of debt-based loans.
Building Capital Reserves
Placing people in roles is a great way to generate sales and ongoing revenue, but if the payments are staggered by a month or longer, cash flow will not improve. To boost cash flow and build capital reserves to roll out growth plans, staffing firms use accounts receivable factoring. The process for factoring receivables is very simple. When an invoice is created, the staffing agency submits it to a nationally-recognized factoring company, like New Century Financial. From there, we convert the invoice to cash and make funds available to the staffing company within 24 hours. The factoring process eliminates staggered payment schedules and speeds up cash flow so staffing agencies can build up the capital necessary to make inroads into new markets, expand their portfolios of skilled candidates, take on larger client accounts, and more. Factoring from New Century Financial does not place debt on the books. There are no fixed payments, no ongoing interest, and no upper limits. Staffing agencies can catch up on outstanding receivables in no time with our factoring services and position themselves for rapid growth.
Contact New Century Financial today, and take the first major step towards growing your staffing agency in 2022.
Review our “Entrepreneur’s Guide to Factoring” for more information and call us at 866-579-1483 or Apply Now to get started.