Thousands of workers hit the Gulf Coast beaches to help with the worst oil spill disaster in history. Temporary workers fill many oil spill cleanup jobs, creating a surge of business for staffing companies.
Oil Spill Workers © BP p.l.c
As a staffing company hires, trains, and pays workers they create invoices in need of payment. That can mean more cash going out than coming in, creating a cash flow crunch during a credit crisis.
Staffing companies in need of payroll funding have historically benefited from factoring invoices. The people they hire to send out on jobs are usually paid every week. On the flip side, it can take their business clients an average of 3-8 weeks to remit payment on the staffing invoices.
It’s easy to see how this creates a cash flow deficit, especially when the staffing company grows quickly to meet market demand. One solution is an immediate advance on the invoices, ranging from 80-90% depending on the staffing factoring company.
When the invoices are paid the factor deducts their fee and remits the balance to the staffing company.
Payroll funding is often available with or without the back office services related to payroll processing, taxes, and invoice creation.
One company meeting the payroll funding demand is Sterling National Bank. Earlier this month they announced making $100 million available to help fund Gulf Coast staffing companies providing workers for the clean-up efforts.
“We know the staffing industry inside and out and are fully prepared to help these companies and communities at a time of extraordinary distress,” said Allen Gershlak, Senior Vice President. (Source: Sterling Press Release – July 1, 2010 – http://www.sterlingresourcefunding.com/gulfcoast.html)
With headquarters in New York City, funding is provided through payroll financing group Sterling Resource Funding. Dale Busbee, Southeast Regional Representative, is based in Slidell, Louisiana and can be reached at 985-640-2782.
Busbee commented, “The response to this catastrophe by people in the Gulf region communities has been swift and truly inspiring. The staffing firms that are being called upon to provide an important part of the clean-up efforts are determined to not let credit limitations deter them from what needs to be done.”
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