Why Staffing Agency Funding Matters
If you plan 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 expenses to worry about, including rent, utilities, and office supply bills. Staffing agencies must often wait for their receivables to age before they receive payment for the employee’s hours.
By factoring your accounts receivable with Capstone, you will be able to:
- Pay temp or contract workers on time
- Recruit additional workers and fill more positions
- Cover overhead expenses
- Expand into other areas
- Fuel growth and take on larger contracts
The following case study demonstrates the power of staffing agency factoring:
Company Background: The 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: meeting weekly payroll requirements and increasing revenue.
The solution we offered was simple: Capstone provided a two-year non-recourse factoring facility to allow the company to meet its 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.
Flexible Solutions for Temp Agency Funding
One of the challenges a temp agency often faces when applying for funding is the lag between when they place a worker and when they are paid for the services provided. Because of this, many temp agencies often face issues when seeking bank loans. Temp agency factoring works well because it allows these agencies to secure the financing they need without the worry of taking on debt. This also means the agency’s balance sheet is stronger while they have the cash flow necessary to grow their business and serve their customers effectively.
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 that 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 typical bank does. Capstone focuses on the creditworthiness of your customer, and not on the credit score of your company. Factoring allows a company with a short track record to continue to thrive and grow without taking on debt. 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 (212) 755-3636. 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.