As we have seen in previous posts, receivables factoring can help companies across a vast array of industries, from transportation to services. But what about recruiting companies? In today’s post, we take a look at how factoring can help recruiting and staffing organizations.
Is Receivables Factoring a Good Idea for Recruiting Companies?
Yes! Factoring of accounts receivable is a good idea for recruiting companies.
The reason is that recruitment companies and staffing agencies often face cash flow problems due to long payment cycles from clients.
Receivables factoring can help solve this issue by providing immediate access to capital, among other benefits.
The Benefits of Receivables Factoring for Recruiting Companies
Receivables factoring offers several advantages to recruiting and staffing companies. Let’s take a closer look.
1. Fast Access to Cash
Receivables factoring helps accelerate the cash flow of recruiting companies by providing them with fast and reliable access to cash.
Since factors pay immediately, recruiting companies don’t have to wait 30 to 90 days to get paid when they factor their receivables, obtaining the capital they need to cover expenses such as:
- Software fees
- Professional services (such as background checks)
- Website development
2. Optimize Resources
Factoring of accounts receivable also helps recruiting companies optimize resources.
In a factoring agreement, the factor takes care of the collection process. This allows recruiting companies to free up resources (administrative staff and time) they can devote to more strategic tasks.
Receivables factoring gives recruiting companies more flexibility in managing their finances.
One way factoring achieves this is by providing companies with capital without the need to deal with loan repayments or interest rates.
Plus, factoring features funding limits that are easy to increase, and if you choose ACS Factors, approvals take hours, not days or weeks!
4. Protection From Bad Debt
Finally, non-recourse factoring can shield recruiting companies from bad debt because when you choose this type of factoring, the factor absorbs the risk of any non-payment.
In other words, if you factor your receivables under a non-recourse agreement and the factor is unable to collect an invoice from your customer, then the factor absorbs the loss, not your business!
ACS Factors: We Turn Your Invoices Into Cash
We are a Factoring company located in Upland, California, with many clients nationwide in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.