Our Cash Flow Funding Can Keep Temp Agencies Running Smoothly
Written by moxysupport on June 16, 2015
As much as any other American line of work, temporary staffing agencies know the challenges that come with the ebb and flow of income and expenses. You must manage myriads of people on a variety of work situations and pay schedules that can get enormously complicated. Often clients are slow to pay invoices, yet employees must receive paychecks on time, a situation that can result in the need for short-term cash flow funding.
You don’t want to take out a bank loan and add to your debt, but you don’t want to take on investors and share ownership of your company, either. Factoring could be your best cash flow funding solution.
US Funding, based in High Point, NC, specializes in factoring – a financial tactic that involves the purchase of a portion of your company’s accounts receivable in exchange for immediate funds for your company’s use. Also called invoice factoring or accounts receivable financing, this time-honored solution to cash flow funding challenges has been especially useful in the staffing industry.
And, because of our extensive experience in this industry, we also offer a wide range of office operations services to temporary staffing and personnel agencies, including payroll, payroll taxes, invoicing, collections of accounts receivable, and other vital back-office responsibilities.
Temporary staffing agencies are particularly susceptible to extreme business cycles, including the inevitable “down cycle” when, for the time being, income is not quite keeping up with expenses. Invoices have been sent and the money will eventually come in, but temporarily there is some lag time that can hamper the ability to do business. This is precisely when factoring can successfully address your cash flow funding dilemma.
Basically, you determine which receivables you want us to purchase. We give you immediate funds for your business based on the total receivable minus a nominal fee, then we assume responsibility for collecting payments on those invoices. Teaming up with US Funding is a “no-lose” solution for your agency.
Back Office Operations
There are several reasons why it makes sense to use US Funding’s expertise to handle your company’s payroll and accounting procedures.
You save time. Many people are employed in a multitude of short-term positions and their assignments change weekly with varying work hours and pay scales. Keeping up with hours, wages, state and federal mandates requires enormous attention to detail.
You save money. You won’t have to employ people to do the computations each week, print and distribute paychecks, prepare taxes, generate reports or other tasks associated with payroll and accounting. We handle invoicing clients, collecting and recording their payments to you, and record-keeping, which frees you from having to employ an accounting department or having to do it yourself.
You satisfy government regulations. Taxes alone are a complicated business. To remain in compliance with IRS guidelines, you must be up-to-date on all laws and regulations because you are liable for misrepresentation even if it was accidental. Let our experts free you from worry about audits and any fees or penalties.