While staffing companies may only represent about two percent of the workforce in the U.S., they are still an essential part of the economy. In fact, statistics show there are around 17,000 staffing and recruitment companies with more than 35K offices currently. To date, these agencies hire and employ over three million temporary workers each week.
As you can see, these staffing companies play a huge role in the U.S. economy. Because of this, many people wonder what options there are for staffing industry financing. Keep reading to learn about the top options available.
Also called accounts receivable factoring, AR financing is a method that staffing businesses can use to receive funding. With this, unpaid accounts are used as collateral to receive cash upfront. Usually, the AR financing company will forward a set percentage of unpaid invoices to the business. When the remaining balance on the invoice is paid by the client or customer, what else is owed on the account will be released minus fees.
A conventional loan can be provided by banks and credit unions. With these, staffing companies receive the capital that is needed to operate, and usually, the rates on these are much more appealing than other financing products. Along with offering appealing rates, lines of credit and conventional business loans provide staffing companies with better terms. This means the company will have the most cash possible on hand to cover costs like hiring employees and payroll funding.
With an SBA loan, you have bank-rate cash flow and credit to obtain financing with the help of the SBA. An SBA loan means that the loan provided by a lender is guaranteed, which encourages the bank to extend the loan. However, these are extremely competitive, which means they may be challenging to acquire.
Another option for staffing companies is an alternative business loan. With this, you can get funding for your company without having to jump through the hoops associated with a bank loan. Rather than providing many different documents, you can apply, tax loans and bank statements to find out if you are approved.
As you can see from the information here, many loans and financing products are available to modern staffing companies. If you are looking for funding or financing for this purchase, consider one of the options here. These will provide the needed funding for growing your business even more.