Factoring Services And How Businesses Can Use Them

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    23-Mar-2016

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If you want instant money for your business but you do not prefer taking a bank loan, why not use factoring, which is also called accounts receivable or invoice financing.

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<ul><li><p>Staffing Factors Page 1 </p><p>How Staffing Agencies Make Money </p><p>And </p><p>Address Cash Flow Issues </p></li><li><p>Staffing Factors Page 2 </p><p>Staffing agencies put millions of people to work each and every day and they </p><p>benefit both employer and the people that look for work through them. For </p><p>employers, working with a staffing agency can take much of the hard work </p><p>involved in head hunting. At the same time, employment agencies help people find </p><p>different types of jobs from a wide variety of career fields, and in many instances, </p><p>provide career opportunities otherwise unknown or inaccessible to individual </p><p>jobseekers. Staffing agencies provide their clients with skilled employees to work </p><p>on temporary or on a contract basis. But there are instances when they offer temp </p><p>to perm positions as well. Aside from helping </p><p>people find work, they also give access to </p><p>various trainings, which allow jobseekers to </p><p>build their resumes, making them more </p><p>marketable in the sector they wish to find </p><p>gainful employment in. </p><p>How staffing companies make money </p><p>Staffing services are a lucrative and growing business. These agencies make </p><p>money by charging hiring companies for providing skilled and qualified workers </p><p>for a certain amount of time. In some cases, temp agencies may earn a commission </p><p>if the employer decides to hire the worker full-time. </p><p>Most staffing agencies directly pay the staff they have placed in their clients </p><p>company, typically on a weekly basis, and send an invoice to the hiring company </p><p>which will in turn cover payroll costs as well as other agreed upon fees. Many </p><p>hiring companies make arrangements with staffing agencies so that they can remit </p><p>payments on their invoices anywhere from 30 to 90 days after the job order was </p></li><li><p>Staffing Factors Page 3 </p><p>filled. This setup allows staffing agencies to secure the business of the hiring </p><p>company; however, it can put a strain on their cash flow as well. </p><p>How staffing companies address cash flow issues </p><p>To deal with cash flow constraints, many staffing agencies take advantage of </p><p>factoring services. Factoring is a financial transaction </p><p>whereby a business, in this case a staffing agency, sells </p><p>its invoices in order to get funds. The staffing factoring </p><p>companies will then collect receivables from the </p><p>customer, which in this case, is the hiring company or </p><p>employer. </p><p>Bank loans versus factoring </p><p>Factoring is often preferred over taking out loans. This is because, unlike banks, </p><p>staffing factors focus first on the credit worthiness of the hiring company that is </p><p>obligated to pay the invoices. This means, it will not be considered as your debt, </p><p>which makes it possible for you to take out other financing agreements to cover </p><p>your other needs. Bank lending is cheaper than factoring, but the latter is often </p><p>more readily accessible. Click here to learn more about factoring staffing agencies. </p></li></ul>