If you are a staffing company, you know that making payroll is one of the more significant challenges facing your industry. You are probably familiar with the scenario where you need to pay temporary and contract employees on a weekly or bi-weekly basis, but the companies that you are contracted with typically pay you in 30-60 days. This leaves a substantial gap from the time you made payment to your staffing resources to when you get paid for providing those services.
Looking at recent stats affecting the staffing industry, Globe Newswire reported in June of 2013, that U.S. Staffing companies employed an average of 2.86 million temporary and contract workers per day in the first quarter 2013, up 2.9% from the same period last year, according to the American Staffing Association.
“Temporary and contract employment is a good indicator of where the economy is today,” says Richard Wahlquist, American Staffing Association President and CEO. “Most staffing firms expect to see slow but steady growth in the months ahead.”
While the economic outlook for the staffing industry is promising, this only means your staffing agency will be putting more money out each month creating a further strain on cash flow. Universal Funding specializes in receivables financing programs that address the issues that are specific to the staffing industry. Let our team customize a financing solution by factoring receivables so you can address the lag issue created by payment terms.
Once you are approved through our quick application process, this is how the funding process works:
• You provide staffing services
• Invoice your customers with the 30-90 day terms agreed upon
• Send those invoices to Universal Funding
• Universal Funding advances you 70 to 90% of the invoice amounts within a matter of hours.
• Universal Funding waits out the terms of the invoices to receive payment
• You receive the reserve balance less the small factoring fee once your customer makes payment
To start your receivables financing program call Universal Funding today at (800) 405-6035.