Obviously the biggest outlay of capital for a temp staffing company is payroll and 941 taxes. Especially for a company in their first few years of operation, having quick access to capital on a regular basis is fundamental to longevity.
The most frequent impediment to gaining access to outside working capital would be the historical corporate financials or lack thereof. Not being able to produce good profitable annual tax returns will result in an outright turn down or actually worse, an operating line that is insufficient to allow for any growth.
By factoring the accounts receivable all you need on an ongoing regular – weekly, monthly basis are time sheets billed to a creditworthy customer. We will even tell you up front whether the customer meets the threshold of credit you are intending on the contract.
Our goal is to provide you the ability to actively go after larger accounts to put more people on contracts, because ultimately that is how you will succeed. In our program, not having a contract period where you are locked in to a contract or having monthly minimum funding balances gives you optimal flexibility to use factoring as a tool to grow your company to new levels.