How to Find the Right Company for Factoring Services
Written by moxysupport on June 30, 2015
Running a temporary staffing agency can be very rewarding. Essentially your job is to find jobs for other people, which can ultimately change their lives. But, as gratifying as it can be, a staffing agency has its own set of challenges. The biggest is probably not having enough cash on hand. This is a typical issue for a staffing agency, but there is an easy solution: factoring.
Factoring is a process by which an agency sells its invoices to a factoring company for immediate cash. This eliminates the need to wait for clients to make payments. While factoring can help staffing agencies immensely, it is vital that they choose the right company to use. Here are the areas to look at:
Before you choose a factoring company to work with, you need to know as much about them as possible. The internet is a great resource to use to learn about companies and their expertise. Make sure to look for testimonials from their previous customers, as well as any reviews.
Also, check their rating with the Better Business Bureau and whether there have been any issues or complaints. Ask other people in your industry if they have used a factoring company and if they have any recommendations.
Experience and Knowledge
While a newer factoring company may be able to give you the services you need, you are probably better off going with one that has been around for a while. Such a company will have a proven track record of helping staffing agencies. This is important because, as you know, staffing agencies have unique financial circumstances. An experienced factoring company will understand this and know how best to help you.
Rates and Terms
When doing your initial research on companies that provide factoring services, do not forget to check their prices. After reviewing a few different places, you should have an idea of what fair rates are. And, you should not automatically go with the company offering the lowest rates. Often these are accompanied by hidden fees and unfavorable terms. Finding a company that has flexible terms is important. This will allow your agency to only factor certain invoices and will not tie you down to potentially harmful restrictions.
Another area that is worth exploring when looking for a factoring company is if they offer any additional services. Some companies, such as US Funding, provide payroll support, which can be a big help for staffing agencies.
Processing payroll can take a lot of time and energy, but if you no longer have to worry about it, you will now be free to focus on running and growing your business. You should also make sure that the company you choose for factoring services allows you to have 24-hour access to your accounts.
If you are considering factoring services for your temp agency, think about US Funding. Our experienced and knowledgeable team has been helping agencies in the High Point area for over 15 years.