How Factoring Companies Can Help Staffing Companies Grow

One of the biggest challenges for staffing company owners is meeting payroll. Employees must be paid every week ? without exception. However, paying employees can be very difficult if an agency does not have predictable or reliable cash flow. What is worse, waiting for a payment from a slow paying client can seriously jeopardize the agency?s ability to function.

This situation, unfortunately, is quite common in the staffing industry.

What is the solution? When owners or managers face slow cash flow their first instinct is to try and get business financing from their local bank. However, they soon learn that getting a business loan is very difficult. Most banks require that the owner have an extensive business history, spotless personal credit and substantial collateral. Unfortunately, small businesses seldom qualify for business loans.

Nevertheless, there is an alternative that can help you finance you staffing agency. It?s easier to obtain than a business loan, can be set up in days and is available to most business owners. And, it provides staffing agencies predictable cash flow.

The solution is called invoice factoring. Factoring provides you with an advance on your invoices from slow paying clients. That advance ? available soon after you invoice for your work ? can be used to cover payroll and other expenses. In effect, factoring receivables provides you with predictable cash flow enabling you to better operate your staffing company.

How does invoice factoring work? Well, it?s a simple solution. It works as follows:

1. You deliver a copy of the time sheet and invoice to the factoring company

2. The factoring company advances up to 90% of the invoice within 24 hours

3. Once the invoice by the customer the transaction is settled

Factoring fees can range from 1.5% to 4% per month and are based on your business volume and other criteria.

One of the most attractive features of factoring is that it is easy to obtain. Most staffing agencies will qualify provided that they do business with good customers and are free of problems. Factoring invoices is an ideal solution for both established and new companies and can help propel your business to the next level.

About Invoice Factoring Group / Commercial Capital LLC

Searching for factoring companies? We are a leading factoring company and can provide you with a competitive accounts receivable factoring quote. For more information call (866) 730 1922.

Selling Steel Reinforcing Bars (Rebar)? Lear How Factoring Can Help You Grow

Companies that sell reinforcing steel bars (or concrete bars - also known as Rebar) have seen a boom in recent years. Many cities have seen a surge in residential and commercial real estate projects, which in turn has increased the demand for Rebar.

Companies that sell, cut and bend Rebar have profited nicely from this growth ? however, they have also faced a common problem in the industry. The problem is tight cash flow. Basically, they sell the Rebar to customers (e.g. builders, contractors) at good prices. These customers usually pay their invoices in 30 to 60 days. In the meantime, the Rebar company must wait to get paid while covering all supplier, payroll and rent expenses. Many times, this is not sustainable. Either the company stops growing, or worse, it starts missing key supplier or employee payments.

Going to the bank to get business financing is not always the best solution. Why? Banks seldom finance companies in the Rebar industry. And before they finance a company, they need to see a detailed business plan, three years worth of company financials and owners with good personal credit. Also, they take months to make a decision. However, there is a better solution problem ? the solution is to factor your receivables.

Factoring receivables provides your company with an immediate advance on the slow paying invoices. This gives you the necessary cash to pay suppliers, employees and rent. And as opposed to bank financing, invoice factoring is easy to obtain.

This is how accounts receivable factoring works:

1. You sell the Reinforcing Bars to your client. You send them an invoice

2. You send a copy of the invoice to the factoring company, who advances you up to 85% of its value

3. Once the customer pays for the invoices, you get the remaining 15%, less the service fee

Factoring companies charge differently for their services, but the cost is generally anywhere between 1.5% and 3% per month. Price varies based on financing volume and on the quality of your invoices.

The biggest difference between factoring financing and bank financing is that factoring is very easy to obtain and quick to set up. Most companies can obtain a substantial line of financing in as little as 5 days. Although not widely used in the reinforced bar industry at this time, it?s an ideal source of working capital that is quickly gaining popularity.

About Commercial Capital / Invoice Factoring Group
We provide financing for Rebar manufacturers and dealers. To learn how factoring receivables, construction factoring or accounts receivable factoring can help you grow your business ? call (866) 730 1922

Non Recourse Factoring vs Recourse Factoring

There are very few things more important to a new, starting small or medium business than cash equity. There are many things that count as equity for example business equipment, cash on hand, line of credit, and even invoices. That's right! Invoices can be a means of equity for almost any business, but getting a working cash flow is usually only possible through recourse or non recourse factoring.

What exactly is non recourse factoring? How does non recourse financing differ from recourse financing? Is non recourse financing right for your blooming business? Let's take a few moments to explore the answers to these fascinating questions.

Factoring is a means of getting a cash advance on payable invoices. Factoring companies hold the payable invoices, and the business gets the much needed cash. When the debtor pays the invoice directly through the financing company, and monies remaining are then given to the business. There is a fee, of course, for this service, and the service has two types of factoring coverage: recourse and non recourse.

Recourse financing translates to what the meaning of recourse actually is in and of itself. When recourse financing is the term of the cash advance on payable invoices, should the debtor of that invoice not pay his or her invoice, the factoring company has "recourse", or the option, to get the monies owed directly from the business receiving the cash advance. Recourse financing means the business is held liable for the future payment of the payable invoice.

On the other hand, non recourse financing is similar but different. With non recourse factoring, should the debtor of the payable invoice not come through on the payment(s), the business is not responsible for the cash advance amount or fee. Instead, in non recourse financing, the financing company is held liable for receiving payment from the payable invoice.

Both types of factoring are popular, and usually, a financing company only does one. However, more and more financing companies are choosing to offer both services to their customers. Since recourse financing is less dangerous for the factoring company than the alternative, factoring companies are choosing both as a viable option for your cash advance needs.

As may be obvious, non recourse financing has a higher liability than the recourse financing to the factoring company. This means it is easier to get a recourse financing cash. Nonetheless, getting a factoring loan will have a lot of different factors taken into consideration such as credit rating, cash amount of the invoices available, and/or time business has been in business.

Finding a good financing company will be the best way to decide this answer. Factoring companies have different requirements and offers, and finding out whether financing is right for your growing or established business is only determined by speaking directly with a reputable factoring company.

Troy Degarnham is the author and webmaster of http://www.accounts-receivable-financing.info an informative website about Invoice Factoring.

Extensive help and tips on factoring companies, assets, small business, medical factoring, non recourse factoring and other factoring financial services

Non Recourse Factoring vs Recourse Factoring

There are very few things more important to a new, starting small or medium business than cash equity. There are many things that count as equity for example business equipment, cash on hand, line of credit, and even invoices. That's right! Invoices can be a means of equity for almost any business, but getting a working cash flow is usually only possible through recourse or non recourse factoring.

What exactly is non recourse factoring? How does non recourse financing differ from recourse financing? Is non recourse financing right for your blooming business? Let's take a few moments to explore the answers to these fascinating questions.

Factoring is a means of getting a cash advance on payable invoices. Factoring companies hold the payable invoices, and the business gets the much needed cash. When the debtor pays the invoice directly through the financing company, and monies remaining are then given to the business. There is a fee, of course, for this service, and the service has two types of factoring coverage: recourse and non recourse.

Recourse financing translates to what the meaning of recourse actually is in and of itself. When recourse financing is the term of the cash advance on payable invoices, should the debtor of that invoice not pay his or her invoice, the factoring company has "recourse", or the option, to get the monies owed directly from the business receiving the cash advance. Recourse financing means the business is held liable for the future payment of the payable invoice.

On the other hand, non recourse financing is similar but different. With non recourse factoring, should the debtor of the payable invoice not come through on the payment(s), the business is not responsible for the cash advance amount or fee. Instead, in non recourse financing, the financing company is held liable for receiving payment from the payable invoice.

Both types of factoring are popular, and usually, a financing company only does one. However, more and more financing companies are choosing to offer both services to their customers. Since recourse financing is less dangerous for the factoring company than the alternative, factoring companies are choosing both as a viable option for your cash advance needs.

As may be obvious, non recourse financing has a higher liability than the recourse financing to the factoring company. This means it is easier to get a recourse financing cash. Nonetheless, getting a factoring loan will have a lot of different factors taken into consideration such as credit rating, cash amount of the invoices available, and/or time business has been in business.

Finding a good financing company will be the best way to decide this answer. Factoring companies have different requirements and offers, and finding out whether financing is right for your growing or established business is only determined by speaking directly with a reputable factoring company.

Troy Degarnham is the author and webmaster of http://www.accounts-receivable-financing.info an informative website about Invoice Factoring.

Extensive help and tips on factoring companies, assets, small business, medical factoring, non recourse factoring and other factoring financial services