Staffing agencies are in-demand now more than ever. Manufacturers, construction companies, government offices, big data companies, and every industry in between are turning to staffing agencies to fill niche roles. For growth-focused staffing agencies, the amount of on-hand revenue can mean the difference between small local clients and being able to branch out into new territories and hiring specialized people to fill those high-paying positions.
Avoiding the Revenue Crunch
Staffing agencies rely heavily on the turnaround time of invoices issued to their clients. Unfortunately, the lag between issuing invoices and receiving revenue can place a strain on finances. When revenue is “in the pipeline” for 30 days or longer, staffing agencies feel a big crunch. They may not be able to pay people who are currently filling roles, and larger contracts turn into missed opportunities due to the lack of capital needed to branch into new markets. Even large staffing agencies with lucrative accounts can feel the revenue crunch if they have to wait a month or longer for clients to pay their invoices.
Faster Revenue for Growth
Fortunately, there is a way to free up revenue from unpaid invoices. Factoring allows staffing agencies to submit invoices for a fast turnaround. Instead of waiting on clients, factoring can provide revenue from unpaid invoices quickly. This allows staffing agencies to grow by finding more qualified talent to fill roles for bigger clients. Instead of focusing locally, growing agencies will be able to land accounts in new territories. Factoring is fast, efficient, and unlike traditional loans, the entire process is debt-free. By using factoring services, staffing agencies of all sizes are able to cover regular expenses, pay their employees, and recruit more talent to land larger accounts in different geographic locations.
At New Century Financial, we provide factoring services for staffing agencies of all shapes and sizes. Whether you are focused on clients in your immediate area and want to grow into new markets, or you operate nationally and simply want to improve your cash flow, New Century Financial can provide solutions tailored to your needs. Reach out to us today, and our team will work with you to help you reach your goals.