Pressure Washing Company
Clerical Staffing Agency
Few industries are more versatile than the staffing industry. Within this industry, there are hundreds of sub-genres that categorize thousands of companies. When American business needs staffing for any project or task, there is always a staffing company prepared to provide the service.
One of the biggest misconceptions about staffing companies is that they simply provide personnel and then bill the client. The staffing industry has become extremely complicated over the past several years and the cost for doing business have gone way up. In order to stay competitive, a staffing company should make sure that it has ample cash flow to cover its bills. Some of those staffing industry bills would surprise people who are not involved with the process of running a staffing company.
Staffing agencies do not just sign up people who send in resumes and then send those people out to work for a client. There is a rigorous recruiting process that goes on with staffing agencies that involves several screening interviews and tests. These all cost money, and it is the kind of costs that most businesses like to keep as low as possible.
For the average company, recruiting is low on the list of priorities when it comes to the company budget. For a staffing company, recruiting is one of those primary functions that needs to be properly funded at all times.
When a staffing company takes on a new client, the client expects the staffing company to assemble a staff and then train that staff. The client provides the staffing company with all of the materials it needs to train employees, and then the staffing company is expected to execute the training. There is usually some on-site training that is done by the client, but the client expects staffing company employees to know their jobs before they get to the client site.
This kind of training can become expensive for organizations that specialize in staffing positions with certifications and other professional needs. The staffing agency is not going to fund the certification process, but it will need to tailor its training to accommodate the needs of the client. Training is a significant expense incurred by staffing agencies.
Sales and Marketing
The staffing industry is extremely competitive and that means that each staffing organization invests a great deal of money in sales and marketing to find and attract clients. Staffing companies are looking for clients who have seasonal needs, project needs and long-term placement needs. It can take an extensive sales and marketing effort to find the kinds of clients that keep any staffing organization in business.
Cash Flow Is A Problem
The initial problem for staffing agencies is that most of their expense obligations are immediate responsibilities. The costs for maintaining the staff they hire out include regular payroll obligations. A client who pays its bills on time expects its staff to be paid as well. The problem is that the clients who do not pay their bills on time also expect their staff to be paid as well.
The staffing company also has its own employees to pay on a regular basis as well. Staffing employee costs such as payroll, certifications and training materials can pile up, but they all need to be paid if the company hopes to stay in business.
The ideal solution for any staffing company would be to have a healthy cash flow position that allows the company to pay all of its obligations and keep its vendors and its clients happy. But when there are outstanding invoices that have gone past due, maintaining a strong cash flow becomes a challenge.
Invoice Lending Meets That Challenge
An invoice lender is the kind of partner that all staffing companies need to keep their cash flow strong and their business profitable. An invoice lender will pay the staffing company for their invoices and take only a small lending fee from each invoice. The staffing company will get its money on or before each invoice date and that will create the kind of cash flow the company needs to remain successful.
Invoice lending utilizes the invoiced sales that a staffing company has already generated to help that company meet its financial obligations. The lender will also assume the responsibility of collecting on those invoices, which frees up the staffing company to focus its efforts on supplying a superior service to all of its customers.