How Does Invoice Financing Help Expand Your Staffing Agency?
Invoice financing, otherwise known as accounts receivable financing, is a type of business financing when an invoice factoring company buys the outstanding invoices of a client and advances them the cash immediately. Receiving immediate cash instead of waiting 30 to 90 days to receive payment gives businesses access to their working capital to grow their company.
Invoice factoring companies work in a variety of industries providing financing options. Staffing agencies using invoice factoring services for help with payroll funding. Invoice financing can help staffing companies make the best financial decisions by giving them consistent cash flow. Below we go into more details about invoice factoring for staffing agencies.
Staffing agencies have a business model that is slightly different from most companies. A staffing agency has to market its services, pay for advertisements to find clients, and then have enough cash to cover payroll. A staffing agency sometimes has to wait weeks or months to see a payment for their client, as the employee has to work and submit a timecard before the client will receive a bill. This is where invoice financing can help.
Unlike a business loan or bank loan, an invoice financing line of credit works by the factoring company advancing the staffing agency cash for their unpaid invoices. The immediate cash gives the company access to their working capital to run business operations as usual. Regardless of if you’re an established business or not, very few companies can wait months to receive payment without running into operational issues.
When working with an invoice financing company, the approval process is a lot quicker than with a traditional lender. A company like Porter Capital can approve you in as little as one business day, and you can start funding your invoices immediately, so you don’t need to cut into your agency’s resources to meet payroll.
You’re able to acquire more clients for your staffing agency when you work with an invoice financing company. Outstanding invoices won’t get in the way of your growth as you will have access to cash flow, and you can invest more in marketing efforts to attract more clients.
When you work with an invoice financing company, you’re acquiring new debt, and no loan needs to be paid off. You’re simply getting access to your working capital so you can stay on top of payroll and grow your business. Discover the benefits of how invoice financing can help expand your staffing agency by getting in touch today. Click here to get a free quote.