Invoice Factoring for Permanent Staffing Companies

Factoring in permanent staffing companies helps every industry. Permanent staffing companies are essential as they help provide labor and fill critical skill gaps. As a business that constantly needs funding to help various industries, invoice factoring is the solution to your cash flow issues.
You can get the working capital you need to hire the right staff, obtain a steady stream of cash, and keep your business afloat by selling your unpaid invoices to a factoring company.

Permanent Staffing Factoring vs. Bank Loans

Here are some benefits of permanent staffing factoring vs. bank loans:

  • Easier access to funding: Banks require credit and background checks. Factoring only checks the creditworthiness of your clients.

  • A continuous line of credit: Banks will advance you one loan amount. Factoring will provide a line of credit for every invoice you provide.

  • Higher advance rates: Banks provide you with limited funding. With factoring services, you can receive up to 90% advance on your invoices.

  • No interest rates. Banks come with high-interest rates. Factoring only has a fee that is usually taken out of the invoice amount owed to you.

Permanent Staffing

Top Financial Challenges in the Permanent Staffing Industry

There are three main challenges for the permanent staffing industry:

  • Overcoming the challenges of employee attrition: Permanent staffing agencies are under extreme pressure to fill these jobs and skill gaps relatively quickly.

  • Recruiting in a highly competitive environment: With so many recruiters and agencies promising to fill job roles, the permanent staffing industry is a highly competitive market right now.

  • Establish reliable funding: Staffing companies are often left with unpaid invoices and not enough resources to perform their job.

How to Run a Successful Permanent Staffing Company

With a market as competitive as the permanent staffing industry, you cannot afford to wait for agencies to pay you. It’s important to have a steady flow of income or funding so you can constantly fill job roles and pay your staff. With finance, you will also be able to grow your business and keep up with competitors.

Financing Options for Permanent Staffing Companies

Bank loans can be an option for permanent staffing companies looking for funding, but it comes with a catch. You will have to pay an amount monthly, along with bank fees, for years to come. It isn’t the ideal option for businesses looking to grow without risking debt. 

Invoice factoring provides a more flexible funding solution. You can sell as many invoices as you need, whenever you need them, and you won’t have the long-term commitment of a bank loan or the fees.

Request a quote if you are interested in invoice factoring for permanent staffing companies.

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