Staffing & Temp agency Funding & Factoring Services

Slow paying customers create cash flow problems for many business owners and make funding payroll, and the ability to or desire to hire more staff members very difficult to support your growing business.  One of the most efficient way to solve your working capital issues is to factor your accounts receivable.  Unlike a fixed line of credit factoring provide you with the flexibility to call for working capital when you need it and it self-liquidates when the accounts receivable are collected.

Most staffing agencies have weekly or twice monthly payroll responsibilities.  In many cases, based on the demand created by your customers, your payroll can be compared to an accordion.  In some weeks it may be much larger than others but it is always a moving target based on the number of workers you have deployed at your customer’s businesses.

Temporary staffing agencies often face challenges which are unique to their industry. Some of these challenges include having to wait bill for staff hours that is not in sync with payroll dates for employees. This makes it challenging to maintain a steady cash flow and grow your company.

Staffing Agency Factoring Services

Staffing agencies provide part-time or full-time workers to a variety of companies. These arrangements often mean you will be paid for your services between 30 to 90 days of placement. Cash flow issues are common with temp agencies and securing bank financing can be difficult. Some companies we have worked with include:

  • Information Technology (IT) staffing agencies
  • Staffing agencies handling office and clerical workers
  • Hospitality and food service industry temp agencies
  • Agencies providing staff for industrial and manufacturing companies

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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.

Download our Two Guides - Restarting your Business Post Covid & Turning your PPP Loan into a Grant

Capstone Capital Group, LLC wants to help you make sure your planning is flawless, which is why we are offering these free guides to help you get back to business on a sound financial footing.

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