IT Staffing Factoring
The information technology (IT) staffing industry is highly competitive and unpredictable. In order to be successful and grow, there is a constant need for working capital. Every IT staffing agency has its own unique strengths, challenges, and goals. Not only are IT staffing agencies challenged with recruiting the best talent but they must also meet payroll and pay other bills. Temporary IT staffing agencies especially are faced with cash flow challenges because they are not paid by their customer until they fill the open position.
How can your IT staffing company not be just another small fish in a big pond without creating debt? IT staffing factoring will turn your outstanding invoice into cash today. Whether you need funds to increase cash flow, hire new recruits, fund payroll, or just ramp up marketing efforts, staffing factoring provides funding for IT agencies within 24 hours. It’s time to stop waiting for slow-paying clients.
What Is Staffing Factoring?
Staffing factoring also knows as payroll factoring, is the process of selling your outstanding invoices for an immediate cash advance. A payroll factoring company buys your agency’s open invoice(s) at a discount. Then the staffing factoring company advances your agency the cash (up to 90% cash advance) and bill your clients at the terms negotiated with you. When your clients pay in full, the remaining amount is returned to you, minus a small fee for factoring services.
Factoring for information technology staffing companies is an easy way to advance your staffing business by providing working capital.
5 Types of IT Staffing Companies That Could Benefit from Factoring
- Staffing agencies waiting for payments from slow-paying clients
- Growing agencies with no credit histories or less than perfect credit
- IT Staffing start-ups struggling with limited resources
- Businesses facing seasonal sales patterns
- Staffing agencies lacking the working capital to cover weekly payroll
The Benefits of Staffing Factoring for your IT Staffing Company
There is a reason invoice factoring is a popular alternative funding option for IT staffing agencies. With the working capital staffing factoring companies provide, your company can run like a dream while you focus on making more money and other exertions.
Since it’s not a loan, you won’t add any debt to your balance sheet. No minimum volumes are required, which means your IT staffing agency is free to factor as-needed. Payroll factoring is based on the credit history of your client, not you so bad credit is OK. IT staffing factoring companies help any small to mid-sized staffing company solve its cash flow problems.
With IT staffing factoring your tech recruiting agency receives:
- Fast funding
- Simple application process
- No hidden fees
- Lowest rates in the staffing factoring industry
- Personalized services
- No minimum or maximum amount required – factor the invoices you choose
- Flexible terms
- Leaves you debt-free
Having to wait 15, 30 or 45 days to be paid by your client can put a damper on company growth. A staffing factoring company can help make sure your working capital aligns with your business needs.
Your IT staffing agency will have the cash flow to:
- Make payroll on time, all the time
- Do more onboarding
- Improve internal efficiencies
- Focus on growth and development
- Increase marketing efforts
- Strengthen your credit standards
IT Staffing Factoring Supports Business Growth
When your IT staffing company faces financial hardship, invoice factoring is an alternative funding solution. Let’s say your staffing agency has a client who is contracted to be invoiced bi-weekly. But they historically make payments every 45 days. Let’s also assume you pay employees once a week. With payroll factoring, you won’t have to stress about meeting payroll. You’ll have the working capital to pay employees and more.
Get the benefits of IT staffing factoring no matter your niche:
- Software developer
- Business Analyst
- Cyber Security
- Network Administrator
- Systems Analyst
- Project Manager
- Product Support
- Technical Writer
- Quality Assurance
Invoice Factoring is Not a Bank Loan
Invoice factoring is a financing solution that helps staffing companies stabilize cash flow by unlocking the cash sitting in unpaid receivables. This leaves you with no debt to repay. Your funding potential is typically capped by banks but by partnering with a staffing factoring company, your funding potential is unlimited. With bank loans, your approval is based on your company’s credit history. However, with staffing factoring, approval is based on your client’s credit-worthiness. Startups don’t typically qualify for bank loans but they do qualify for invoice factoring.
The Process Is Simple
The temp staffing factoring process:
- Fill out forms or call us
- We match you with a staffing factoring specialist
We match your agency with the best IT staffing factoring specialist.
- The factoring company verifies your invoices
You forward the invoices you wish to factor and timesheets to your factoring specialist
- You receive a cash advance
You receive between 70% and 95% of your invoices’ value.
- Get the rest of the balance
When your clients pay in full, you receive the balance, minus a small factoring fee.
- Repeat as needed
Factor your invoices as often as you like.
Qualification Is Easy
We work with small to medium-sized IT staffing agencies. Whether your staffing agency has 5 or 5,000 employees, we’ll help you find the perfect cash flow solution for your business needs. It doesn’t matter how long you’ve been in business. Startup IT staffing agencies are welcomed as well. As long as you have outstanding invoices from credit-worthy clients, payroll factoring is an option for you.
Payroll factoring requires minimal paperwork which includes:
- Brief application
- Most current aging report for your receivables
- Client list
- Credit limit request
- Invoices you wish to factor
- Copy of DBA filing or Articles of Incorporation
- The signed invoice factoring agreement
Note that those with tax or other legal issues may not qualify for staffing factoring.
Contact Us Today and Grow Your IT Staffing Company
Our goal is to help your IT staffing agency prosper. By relying on us, we’ll listen to your business needs and partner your agency with one of our longtime trusted funders. Your company can have the working capital needed to support business growth and development. Take on larger clients and cover high payroll costs of lucrative seasonal projects with confidence. Call us or fill out our quick form to get started today!