If your staffing company is just starting up or well established, cash flow can be an issue when you are growing. Invoice factoring for staffing companies can help you with cash flow issues at any stage in the game. It’s often used for payroll funding, cash flow gaps or constrained working capital, extended payment terms, limited bank credit, and funding new orders.
Your agency needs a steady source cash flow to improve company processes, expand the company, stay on top of payroll, pay taxes and/or fulfill large or unexpected contracts. Simply put, healthy cash flow allows you to take advantage of opportunities when they come your way.
Hitachi Business Finance works as an additional level of support for your staffing agency. With solutions tailored to your company’s specific needs, you never have to worry about being locked into a one-size-fits-all deal. Can’t qualify for a bank loan? Our invoice factoring solution just may suit your business even better.
Invoice factoring turns your unpaid invoices into immediate cash, eliminating long accounts receivable cycles. This immediate access to capital allows you to grow your business, invest in equipment, fund payroll, or hire additional staff. Invoice factoring depends on your customer’s ability to pay, not yours.
First, you sell your products or provide services and issue invoices. You then submit your invoices to us. We verify your invoices with your clients and confirm that the product has been shipped and/or services were rendered.
Next, we advance 80-90% of the value of the invoices to you on that same day. Your client sends the invoice payments to a lock-box account owned by Hitachi, but payable to you. When payments are received, you receive the remainder of the invoice amount, minus the original advance and fee(s).
See How Invoice Factoring for Staffing Companies Helped a Local Agency