Temporary staffing companies frequently use factoring companies to grow their business. It alleviates the headache of cash flow as bigger contracts are signed and more staff is placed. The benefit of factoring those invoices is there is no top limit to how much can be financed. So unlike a bank line of credit which has a credit limit, invoice financing can grow with the company. It is a very suitable way to get through a growth period. Typically, well run staffing firms have excellent profit margins so the nominal financing charges are never a problem.
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.