Why Staffing Agency Funding Matters
If you are going to secure new contracts with larger companies, you need to be able to meet your weekly payroll obligations and the terms of payment prescribed by your new customers. In addition, you have other invoices including rent, utilities, and office supply bills coming in. Staffing agencies often must wait for their receivables to age before they receive payment for the employees hours.
This case study demonstrates the power of staffing agency factoring:
Company Background: This company offers software development, IT solutions, and provides staffing to several clients across the United States. Their sales exceeded $2,000,000 per year. However, they were facing two primary challenges including meeting payroll and increasing revenue.
The solution we offered was simple: Capstone provided a 2-year non-recourse factoring facility to allow the company to meet their payroll obligations while growing sales. Once the credit of the customers was approved and funding occurred, the company was able to achieve its growth in sales, meet their payroll obligations, and has continued their relationship with Capstone.
Creative Solutions for Temp Agency Funding
One of the challenges a temp agency often faces when applying for funding is the split between when they place a worker and when they are paid. Because of this, many temp agencies often face issues when asking for a bank loan. Temp agency factoring works well because it allows them to secure the financing they need without the worry of taking on debt. This also means their balance sheet is stronger while they have the cash flow necessary to grow their business and support their customers properly.
Because of the unique position a temp agency is in, it is often difficult to find someone who understands the business structure and is willing to provide staffing agency funding. This is why Capstone is committed to helping provide a customized proposal based on your specific needs.
Options for Temp Agency Funding
If you operate a temp agency, we can help you find the right solution for your business. We will carefully review your sales, discuss your unique cash flow needs and help arrive at a solution which provides you the capital you need to meet your obligations and grow your business.
Using Temp Agency Factoring to Fuel Business Growth
We do not take the same process of underwriting a financing request a bank does. We focus on the creditworthiness of your customer, and not on the credit score your company shows. Factoring allows a company with a short track record to continue to thrive and grow without taking on debt which is good news. At Capstone, we understand the faster you can get paid for your invoices, the more opportunities you can take to grow your company.
Staffing agencies need not struggle to meet their payroll obligations, nor be held back because of a lack of capital. Capstone can help you accelerate your business cash flow. Contact us today by email at [email protected] or call us at 347-821-3400. Let one of our highly-trained representatives review some of the options we offer and help craft a specialized plan to help you accomplish your long-term company goals.