Accounts Receivable Factoring Factoring for Professional Employer Organizations (PEO)

Factoring for Professional Employer Organizations (PEO)

The PEO (Professional Employer Organizations) industry, formally known as employee leasing, is growing at a brisk pace. According to NAPEO (National Association of Professional Employer Organizations), the industry grew by $8 billion to $92 billion in gross revenues in 2012. Often growth comes with working capital problems. Having proper cash flow during growth periods is essential for success, especially for a small business.

Cash flow solutions such as receivable financing programs present an opportunity for PEO’s. The average client of NAPEO members is a small business, with an average of 20 employees. Clients range from accounting firms to high-tech companies to manufacturers to government agencies. Receivable factoring programs give these companies the ability to grow by providing them with needed cash flow.