Payroll Funding
Most staffing agencies find themselves with cash flow problems. Cash flow problems will usually hit staffing agencies that are growing quickly. The most common cause for cash flow problems is slow paying customers. Basically, the agency has payroll expenses that have to be met on a weekly or biweekly basis. Revenues from law offices and corporate customers are tied to invoices that pay in 30 to 60 days. Invoice factoring for staffing agencies is an alternative for cash flow solutions.
Factoring solves the cash flow problem by accelerating revenues due from slow paying corporate and legal customers. GMA Factor will advance funds using your invoices as collateral. This provides your staffing services company with the needed funds to cover payroll expenses and take on new business.
One advantage of invoice factoring over conventional loans is that it’s relatively easier to obtain. To qualify, a staffing agency has to meet these criteria:
Company must be free of legal and tax problems
Invoices must be to commercially credit worthy customers
Invoices must be for completed work
Invoices must be free of liens
Most invoice factoring plans are very flexible and grow with your business. Your financing line does not have an arbitrary maximum, rather it’s tied to your invoices and will grow with them as long as you invoice credit worthy commercial and legal customers.
GMA Factor does not sign you on to any long-term contracts. The agreements allow you the flexibility to factor what you want, when you want. You can pick and choose the accounts that you want to factor.
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