Staffing Factoring, a New Solution for Small Businessby Kevin Smith Author
If 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?
Created on Jan 29th 2018 04:12. Viewed 114 times.