Accounts receivable factoring companies often times assist personnel staffing firms in growing their business. The overwhelming labor quotient can become a real headache from lack of cash flow, as bigger contracts are signed and more employees are placed. A great benefit is realized by factoring those invoices to meet weekly payroll. It is an acceptable method to get through a growth period. Typically, well run staffing firms have excellent profit margins so the nominal financing charges are not going to be a burden on the bottom line. This is especially true when you consider how many additional employees can be placed knowing payroll is available every time a new invoice is produced.
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.