It’s great that temporary staffing companies frequently use a factoring company to grow their business. One of the biggest headaches of cash flow happens when larger contracts are signed and more staff is placed. The benefit of factoring for up and coming staffing agencies is when submitting those receivables there is no top limit to how much can be financed. Unlike a bank line of credit which has a credit limit, invoice financing can grow with the company. There may only a few accounts at the beginning, but as the company grows and adds more accounts and personnel the ability keep payroll satisfied becomes a concern. Factoring is a very suitable way to get through this growth period.
Therefore if one of our new clients is billing $50,000 a month today but $500,000 by the end of the year, the facility just grows with the client. Because it is so simple to use, easy to set up, and a ready access to capital, accounts receivable financing is a trusted tool of the temporary staffing industry.