Staffing Company Factoring Invoice Financing

Most businesses in the Staffing industry could make more money if they had more of their money. Funds could be used to hire more people or purchase more Office needs, payroll, etc.., purchase product and supplies at a discount, or generally increase sales. However, many staffing companies have thirty plus days of sales tied up in accounts receivable. Factoring solves that by funding cash on invoices immediately instead of having to wait thirty days, sixty days or more.

1So, what is staffing industry Invoice Financing?

For over 4,000 years, people have used some form of factoring. Invoice factoring as we know it today is a type of business financing that allows businesses to circumvent traditional means of funding. Methods such as bank loans and private investments are less preferred because of their restrictive stipulations and their long approval times. To receive funding through this type financing, all you need are invoices that can be factored. Basically, you, the company, are selling your debt owed to you for money now.

2How does it work?

Your company does work and then bills customers for that work. If you send those invoices to Transfac, we will advance you a large percentage (many industries up to 90%) of the value owed to you in less than a day. Then, when your customer pays the bill several days or weeks later, Transfac forwards you the difference between the payment and the original amount advanced, minus a small fee for administration and funding.

3Top Reasons to Consider This Type of Funding For Your Business

 

  1. No new debt, no loans
  2. Receive payment in less than 24 hours
  3. Eliminate collections
  4. Professional AR management including Credit Management
  5. Improve cash flow and credit

Find out today how we can help finance your business.

Cash flow in a business is not always the same from day to day or week to week. Many companies have sporadic cash needs at different times in their business cycle. A Line of Credit using Accounts Receivable can smooth out cash flow and allow the business to be most efficient with its financial resources.

1What is Accounts Receivable Line of Credit?

Accounts Receivable Line of Credit (AR Line) is for the customer that can manage their cash needs on a daily basis. An AR Line customer will still enjoy the benefits of outsourcing the accounts receivable management. Transfac will purchase invoices and use those invoices as a pool of collateral for a credit line to be drawn upon as needed.

Oilfield accounts receivable financing is a simple, popular method of business funding. Traditionally businesses leveraged company equity and assets to secure bank loans. This process can be cumbersome and take a long time – 30 days or more. Because of the long wait for loan approval, companies needed to find another, quicker means of funding. But how could a company circumvent standard time restraints and standard loan amounts? This is where accounts receivable factoring benefits many businesses.

2Benefits Accounts Receivable Factoring

 

  • Pass the buck – Well, not actual dollars, just the responsibility of collecting them. When you outsource your accounts receivable to another company, it frees up precious resources and allows your staff to focus on more important matters.
  • Work your capital – A lot of companies have capital, its just tied up in other resources such as inventory or invoices. Getting some free flowing capital will be far more helpful to your business than already allocated capital.
  • Quick Cash – To acquire accounts receivable factoring, you wont need an intricate business plan or years worth of tax statements. Usually businesses that get accounts receivable factoring have good customers and a good business, but banks don’t like the businesss financial ratios.

 

Contact us today and find out what we can do for your business.