How Factoring Benefits Temporary Staffing Agencies

temporary staffing factoringTemporary staffing has been a linchpin for recession recovery, representing approximately 14 percent of the nation’s job growth each month throughout 2013. As a result, temporary staffing agencies may feel the cash crunch of expanding recruitment and marketing efforts and meeting greater demands from their customers. For these agencies, invoice factoring is the ideal funding solution to keep them on solid financial footing.

There are several benefits to factoring for temporary staffing agencies:

  • Factoring is the most flexible financing option available to staffing agencies. Financial flexibility means they do not have to worry about submitting a minimum amount of invoices or hitting a monthly maximum. An agency can choose to factor as much of their eligible receivables as they need to pay their expenses. In addition, many factors do not require a long-term contract so staffing agencies can continue factoring only as long as they need to.
  • Because factoring is directly based on the client’s invoices, staffing agencies that choose factoring over traditional lending have unlimited funding potential as they expand. This creates more opportunities for growth without having to jump through hoops to increase their credit line, and can be a powerful incentive for agencies to pursue new placements.
  • Back office support can help staffing agencies cut additional costs. Factors that provide collections and payroll support free up additional capital for agencies to reallocate to build other areas of their business. Also, factors provide credit verification for potential customers. Staffing agencies can make educated decisions about placing employees without compromising their bottom line.

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  • Most importantly, factoring gives temporary staffing agencies peace of mind. Agencies can pay all of their employees and pay bills on time without waiting for customers to pay their staffing fees. If a staffing agency no longer needs to worry about their cash flow it will be in a position to take advantage of other openings for building the company, such as exploring new marketing strategies.

As temporary staffing continues to play a large role in rebuilding the nation’s workforce, factoring companies can help ease critical cash flow needs and set agencies on the path to continued success.

About the Author: Factor Finders specializes in finding factoring companies that can fund difficult-to-place deals. Our services help other factoring brokers capitalize on commissions that might otherwise be lost.

If you have a prospective transaction that you cannot find a funder then contact us at We’ll find the factor for you and split commissions 50-50.

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