As the owner of a local staffing agency, you know you have helped several businesses in town hire the best possible available candidates. Plus, you’ve helped workers in various industries find local jobs that suit their needs. But where can you go when your staffing agency needs financing for expansion or for help with cash flow issues? Here are some ideas.
Stay Up-to-Date in Your Industry
Your staffing agency exists within a competitive industry. Large firms such as Robert Half and Addeco are continual threats to your survival. You know you must provide the best, most creative customer service possible in order to maintain your fair share of the market.
Therefore, you must stay up-to-date with the ever-evolving technologies of the industry. You must do this in order to serve your clients well. Sometimes, you really have to stretch your budget to acquire these tools when you need them, and this can affect your agency’s cash flow. So where can you go when you need additional funding for expanding your staffing agency and acquiring the technologies you need?
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Of course you want to find a great interest rate and the best possible deal. To do this, you could spend hours, days, even weeks visiting local banks and scouring the Internet. Then, you would need to exchange multiple emails with your short list of lenders in order to find just what you need. Instead, why not simply visit a business funding website that’s designed for time-pressed business owners just like you?
Once there, all you have to do there is enter a free, no-obligation application online. Then, when your application has been received and reviewed, the loan experts at the funding website will offer it to a pre-screened network of quality lenders who specialize in making loans to staffing agencies like yours. Within short order, you will receive up to five offers from lenders who want to work with you.
Once you have chosen the lender whose offer most closely meets your needs and your application has been approved, you could be working with your new lender to obtain the funding you need within the next business day.
Keep the Cash Flowing in Your Staffing Agency
Your vendors expect to receive payments from your staffing agency on time. What’s more, you have your own payroll and other office expenses to take care of. However, when your clients take thirty days or more to pay your invoices to them, cash flow can become a problem in your staffing agency. In this case, look to accounts receivable financing to take the hills and valleys out of your revenue flow.
With accounts receivable financing, you’ll have a smoother ride. That’s because you’ll work with a factoring company. You’ll sell your invoices that are not yet due to the factoring company. Then, the factoring company will advance to you a large percentage of the total of those invoices—sometimes as much as 98 percent.
Your clients will then pay the factoring company the money they owe you. Meanwhile, the factoring company will take care of the bookkeeping and collection services, so you can focus on growing your business.
Thereafter, on a regular basis, the factoring company will send to you whatever percentage of your invoices they have received from your clients that they did not already advance to you, minus a small financing fee.
Many staffing agency owners prefer accounts receivable financing over an interest-bearing business loan. This is because a business loan requires a payment each month and represents a drag on their balance sheets.
If you use accounts receivable financing, no longer will you need to wait to get the money your clients owe you. Your revenue will become steadier, and you’ll be able to plan for the day-to-day expenses in your staffing agency more easily.
Take Your Staffing Agency to the Next Level
There may come a day when you will want to expand your staffing agency. When that time comes, perhaps you’ll renovate your office. You might instead want to open a branch office on the other side of town. You might even have plans to acquire a new business or franchise. Or maybe your staffing agency just needs new equipment to stay ahead of the competition.
Whatever the case, an SBA loan can help you to reach your goals. With an SBA loan you’ll find competitive rates, generous repayment terms, and larger loans of up to $5 million.
Whatever financing needs your staffing agency has, the loan experts at YourFundingTree can help you to find the best possible deal.