Accounts Receivable Factoring Factoring for Professional Employer Organizations (PEO)

Factoring for Professional Employer Organizations (PEO)

factoring for professional employer 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.