Never Miss Payroll With a Hospitality Staffing Factoring Company
Hospitality Staffing Factoring
By connecting the perfect candidates and talent, from hotel concierges to housekeepers and waitstaff to event venues, staffing agencies allow the hospitality industry to run as smoothly as it does in the face of constant labor shortages. Such an essential function means staffing agencies cannot afford to run into tight cash flow. Hospitality staffing agencies must meet payroll, cover operating expenses, and keep current on inventory and supplies. Yet many staffing agencies run into issues like fluctuating client demand and delays in payment, creating financial struggles and gaps in cash flow. Hospitality staffing factoring can help.
Hospitality Staffing Payroll Factoring for Small Business
If you own a staffing agency experiencing these common financial struggles, you may wonder what the next step could be. When being approved for traditional bank loans is becoming increasingly difficult for businesses in need, and even when approved, you find yourself waiting for potentially months on end, invoice factoring is an alternative solution.
Read how business factoring works for your staffing business.
What is Invoice Factoring for Hospitality Staffing Agencies?
When staffing agencies need critical working capital and have difficulty securing funding, invoice factoring is a great alternative. Invoice factoring is a creative, innovative funding option involving selling unpaid invoices to an invoice factoring company for an immediate cash advance.
The approval process for invoice factoring is quick and simple, requiring minimal documentation. It is not based on your staffing agency’s credit but your client’s creditworthiness, providing greater accessibility. Provide us with legitimate invoices, and we will provide you with legitimate funding. After this quick approval process, Bankers Factoring is proud to provide your staffing agency with same-day funding after approval.
Many traditional loans also come with high fees and interest rates. However, with Bankers Factoring, invoice factoring fees are always low and affordable, with completely transparent rates and zero hidden fees. Our fees are so simple that you can calculate them on a napkin, and they are cheaper than swiping a business credit card.
Learn more with our comprehensive guide to factoring invoices.
How Does Invoice Factoring Fund Staffing Agencies?
How does Hospitality Payroll Funding work?
Once your hospitality staffing agency has successfully placed the perfect employees and subsequently created an invoice from the hiring employer, this new invoice is often on payment terms for 30, 60, or even 90 days. But you don’t have to let slow payment get you down: you can now sell your accounts receivable to an invoice factoring company like Bankers Factoring.
Now that you have sold your unpaid invoices to us, we will provide you with an immediate cash advance of up to 80-93%. With our famous Bankers Factoring light touch, we will collect the payment from your customers, taking the burden off your hands. When we receive the payment from your customers, we will forward you the rest of the reserves minus a small factoring fee.
Understand the difference between collection agencies and factoring companies.
Once this process has been completed, you can leave behind the headache and stress that seasonal downtimes and slow payment create. There is no limit to invoice factoring; you can repeat this process with as many invoices as you like as frequently as you like. You are also free to use your new working capital wherever you see fit with no restrictions from us, and you will also never give up any sort of equity or ownership at all with invoice factoring.
Got more questions? Get them answered with our invoice factoring FAQ.
How A/R Factoring Enables Staffing Agencies to Expand Services and Client Base
Making payroll for your employees is essential, and oftentimes, when your staffing agency finds itself in financial struggles, all your energy is often focused on making ends meet. Opportunities for expansion, growth, and financial health get put to the side.
However, when you factor your invoices with us, your financial struggles can transform into strong financial health. By bridging your gaps in cash flow, we enable you to put your worries of making ends meet in the past. Instead of focusing on making the minimum, you can now focus on seizing new and unique opportunities for expanding your services and client base.
Are you worried about what your clients will think about invoice factoring? Read our article on how to talk to your customers about factoring.
Bad Debt Protection with Staffing Factoring
Bankers Factoring also offers something unique to staffing agencies, even among factoring companies: bad debt protection from non-recourse factoring. Non-recourse factoring means that if your client cannot pay their invoice thanks to issues with credit, we will absorb this loss for you, taking on all the credit risk and protecting you from bad debt.
Non-payment can be devastating, especially when you are already experiencing financial difficulties. With Bankers Factoring, you can find true security and peace of mind knowing that non-payment will cease to be a threat when you factor your invoices with us.
Learn more about the safety that comes with bad debt protection.
The Benefits of Staffing Financing with Bankers Factoring
Bankers Factoring understands the importance of staffing agencies and their impact on the hospitality industry, and we want to see your staffing agency succeed. What we provide to your staffing company goes beyond simple invoice factoring services and turns outstanding invoices into same-day working capital.
With over two decades of experience providing for staffing agencies like yours, the owner-employees of Bankers Factoring are excited to welcome you into the family and support you along your entrepreneurial journey. Please read how to start and fund a staffing agency.
Hospitality Industry Factoring gives you:
- Bad debt protection with non-recourse factoring
- Bridging and solving gaps in cash flow
- Transparent terms and zero hidden fees
- Low rates are similar to swiping a business credit card
- Fees that drop as your business grows
- Credit approval based on your client instead of you
- Access to our decades of knowledge and expertise
- Famous Bankers’ light touch with your customers
- 24/7 online reporting portal
- Greater accessibility than traditional loans
- SBA loan turndown specialists
Learn more about why Bankers Factoring when you choose invoice factoring for the hospitality staffing industry as your financing option.