Discover why recent US labor statistics reveal that now is an excellent time for brokers to sell temporary staffing factoring in this article from Nikki Flores of PRN Funding.
Did you know that many experts look at transitions within the temporary staffing industry to help make predictions about the future of our country’s economy?
The reason is because the temporary staffing industry is deeply intertwined with all facets of Corporate America. Allow me to elaborate…
Simply put, most companies don’t typically invest a lot in their temporary workforce. They hire supplemental workers when the times are good, and cut them loose when productivity decreases. And even though it’s not typically newsworthy, when big corporations discharge their temporary workers, it doesn’t take long for the national unemployment rate to rise. But what do business owners do during times of economic uncertainty? Or in other words, what are business owners doing right now?
Times of uncertainty breeds fear. For the most part, today’s business owners are nervous to hire full-time employees. Worries about the upcoming presidential election, increasing restrictions to borrow from traditional lenders, the European debt crisis, rising gas prices and healthcare reform are all weighing heavily on the minds of today’s business owners, making them hesitant to invest heavily in hiring full-time employees and/or to take on adventurous business opportunities.
Yet, some business owners are starting to “test the waters” a bit by strategically increasing their workforce through the use of temporary workers.
In fact, the U.S. Bureau of Labor Statistics reported that companies added 21,000 new temporary positions in April alone.
No doubt, the steady climb in the temporary staffing industry is a welcoming sign that our nation is well on its way to economic recovery.
As the economy continues to improve, business owners will continue to ramp up their temporary human capital. Of course, this trend won’t stay here for long. Soon, the economy will be stable again, and temporary staffing will taper off as business owners become more comfortable with taking risks and begin hiring full-time employees. Keeping all this in mind though…
Now is the perfect time for cash flow brokers to enter the ring and start selling accounts receivable factoring to temporary staffing agency business owners.
After all, factoring temporary staffing accounts receivables is a great way for agency owners to grow while taking minimal financial risks. In a nutshell, temporary staffing factoring gives the business owner the ability to keep up with his/her customers’ demand for temporary workers. Basically, staffing factoring provides the following:
• Instant Cash: Funds can be electronically transferred into a business owner’s account within hours of invoicing.
• Unlimited Credit Lines: Credit lines grow as the need for capital increases. As long as an agency owner has receivables to sell, a factor can increase the overall credit limit for an agency.
• Offer Credit Terms to Customers: Because agency owners receive cash quickly after selling invoices to a factor, they have the ability to offer flexible credit terms to their customers.
In a nutshell, now is an exciting time for cash flow consultants and factoring brokers that are willing to jump into the temporary staffing factoring arena. Now more than ever, cash flow consultants and factoring brokers have great opportunity to help bolster the economy by pairing staffing agency owners with an appropriate funding source. Doing so produces results in three-fold: the factor increases its business, the agency owner doesn’t have to worry about his/her cash flow during times of uncertainty, and you (the broker) get to increase your commissions.
PRN Funding exclusively factors the accounts receivable of companies that sell goods or provide services to healthcare providers.