Staffing Factoring, a New Solution for Small Business
by Kevin Smith AuthorIf you own a small business, you know that trying to obtain a
small business loan can be costly. Interest rates on a loan for a small
business can be anywhere from 4 to 6 percent. Not to mention that these loans
can be difficult to obtain from a bank or credit union. The solution? Staffing
factoring.
What Is Staffing
Factoring?
Staffing factoring is, in essence, selling your unpaid invoices to
a third party. Your invoices have to be guaranteed invoices, a sure thing to be
paid at a later date from your customers. You then receive a cash advance from
the third-party company, and when the invoice is paid by your customer, they
receive that money.
Why Is It Good for
Business?
Cash, like water, must flow for things to keep growing. A small
business with a cash flow problem could spell disaster. The turnaround rate for
an unpaid invoice vastly outweighs the weekly or bi-weekly expenses that a
small business incurs. For example: if you are a staffing company, you may give
your customer 30 to 90 days to pay their invoice. However, your employees that
have been working for your customer need to get paid bi-weekly.
It allows you the ability to be more responsive to the needs of
your business. Instead of having to wait for unpaid invoices to finally be
collected, you can make essential changes to your business when they need to be
done. Leaky pipes, new printers, and broken signs don’t wait for an invoice to
be paid.
Staffing factoring is also a great option for trucking companies.
Instead of waiting for the lengthy invoicing and payment cycle, you can get
paid immediately upon delivery.
Why Is It Better
Than a Loan?
Time is money, as they say. Instead of waiting weeks to hear back
from a bank, which may have not even approved your loan, you could get cash in
as soon as 48 hours.
It is vastly easier to obtain than a loan. Some companies that
offer staffing factoring in Macon, GA, do not even require a credit
check.
You do not have to worry about collecting the invoice. This is now
the third party’s prerogative and they will collect it for you. You already
have the cash, and you don’t have to bother with trying to collect it from your
customers anymore. This is extremely beneficial if you do any international
commerce. You can relax and let your staffing factoring company collect
complicated international invoices and payments.
As a small business owner, you don’t have to let cash flow slow
you down anymore. Staffing factoring can be an easy, affordable, and simplified
way to keep your business on track so you can do what you do best. There are
several companies that provide staffing
factoring in Macon, GA. Why not start your
search today?
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Created on Jan 29th 2018 03:12. Viewed 288 times.