Your staffing business has been pretty successful up to this point. You have great clients and some are even looking to grow, which in turn offers growth opportunities for you. And, new potential clients are ringing your phone.
How could this present a problem?
You run a tight ship and business is running smoothly. You pay your bills on time and you make weekly payroll, but there’s not a lot of extra money. To accept that new client means needing the extra capital to make payroll weekly. And that new client? You’ll be billing them monthly. Then there’s the client who’s growing. With their growth comes some changes in their payment terms; they’re going from net 30 to net 60.
Suddenly, that exciting growth is causing more stress than enthusiasm.
You don’t have to turn down a client due to changes in payment terms or growth.
Factoring can save the day and give you something to cheer about! Factoring is a simple way to ensure you have the cash to cover payroll without taking out a loan, or—worse yet—turning down a client. Factoring offers a way to access your money without waiting 30, 60 or 90 days for your customer to pay the invoice. A factoring company will pay you immediately for that invoice and then the factor plays the waiting game on the payment from the customer.
This process allows you to pay make payroll weekly, even though your clients pay you monthly. Staffing and consulting companies have relied on factoring for years to manage their working capital needs. It also allows for changes in payments terms, slower paying clients and other accounts receivable issues that can cause sleepless nights. It takes care of so many issues without dinging your credit or the need to take out a costly loan with monthly payments and high interest rates!
Porter Capital has been helping companies for over 25 years, and we can help yours too! We understand the staffing and consulting business and can help you manage your working capital so that you never have to turn down a great client due to cash flow.
Call Corey today at 205.397.4069 for a free, no-obligation assessment.