Staffing agencies have changed a lot over the past decade. Where once staffing agencies were used for day laborers and administrative assistants, they are now supplying network architects to handle big data and filling positions at top levels in government agencies. Staffing agencies supply every industry with employees who have specific skill sets. However, the field in which staffing agencies exist is very competitive, and achieving growth is largely based on how quickly they can receive revenue from their contracts.
Of Contracts and Payments
Most staffing agencies fill positions based on contracts. Some are weighted against weekly or daily hours. Others offer salaried positions, and are structured around monthly or yearly agreements. Depending on the layout of the contract, staffing agencies may receive payment over installments, or as one balloon payment once the contract expires. Either way, agencies may find themselves waiting for prolonged periods before seeing the full balance for all of their efforts. At the same time, agencies need to keep paying their employees, which does not leave much capital left over for growth.
Factoring gets rid of the wait on staffing contracts by converting invoices to cash on the same day they are generated. The advance in revenue allows agencies to grow and take on larger client accounts, fill new positions, and expand their marketing without having to wait for their clients to remit payment. Factoring also removes the need to take out loans for internal growth projects. Factoring is debt-free, and is based on tangible receivables, not credit ratings or any of the other high requirements set by banks and similar lending institutions.
Serving Staffing Agencies Of All Types
Factoring is used for staffing contracts of all types. Day labor agencies, IT headhunters, government staffing, and more take advantage of the many benefits offered through factoring services. Whether your contracts are monthly, yearly, or ongoing, factoring can speed up the rate of revenue and remove long waiting periods on client accounts, while allowing your agency to accumulate growth capital.
Learn More About Factoring
FSW Funding offers the most comprehensive factoring program nationwide. We specialize in providing custom solutions to staffing agencies of all types to help them grow and thrive in an increasingly diversified and competitive landscape. Whether your agency is focused on regional positions, or if you provide staff throughout the county, our team can help. Contact our offices today to learn more.