When Choosing a Staffing Factor for Your Company as a temporary staffing agency, you know all about the importance of creating and maintaining positive relationships with your clients. Since the staffing factoring company you choose will serve as the face of your business when it comes to billing and collections, you want to choose a factoring company wisely.
Here are three pieces of information to take into consideration when deciding on a staffing factoring company:
1. Is the staffing factoring company offering you a large enough advance on your invoices? Staffing agencies constantly have to battle to keep their profit margins steady. If they need to maintain their payroll and pay their employees weekly, yet only bill their clients every 30 to 45 days, the math is easy to see.
And if clients take their time to pay, the need for a steady, consistent cash flow that staffing factoring companies can offer becomes even more appealing. But make sure you are getting a high enough advance to make the factoring worthwhile. The best factoring companies will work alongside you and create a customized factoring approach to your individual business needs.
2. Does the staffing factoring company have many staffing agencies as clients? Can they provide you with references you can call regarding their factoring services as they relate specifically to the temporary staffing industry? You have to deal with many facets of your business: payroll, Worker’s Comp, matching employees with jobs suited to their skill sets, interviewing, a never-ending need for a consistent cash flow… the list goes on and on.
So make sure the staffing factoring company you choose is equipped to deal with all the tenets of your business and has dealt with staffing clients in the past. If the factoring service specializes in staffing factoring, all the better.
3. Is the factoring service’s online information sophisticated enough for a fast-paced staffing agency’s needs? With jobs coming in every day and old jobs finishing up, you probably want an invoice factoring company that can offer you an up-to-date user interface you can see in real-time. Which invoices are still pending? What is the summary aging of all the outstanding invoices? How much credit do you have available at any given time? A technologically up-to-date user interface should be able to offer you all that information and more.