How Factoring Companies Help Staffing Agencies

Posted by on June 27, 2016 in Uncategorized | Comments Off on How Factoring Companies Help Staffing Agencies

It is not uncommon for staffing agencies to experience working capital challenges, especially with weekly payroll. Invoices can take up to 90 days to be paid, all the while you still have to pay your staffing payroll on time. Whether you specialize in short and long term temp work, or professional recruiting, there are going to be times when the amount of cash coming in is not able to cover what has to go out. These issues are relevant no matter what industry your staffing firm represents from janitorial to nursing, to security guards to teachers. What Mistakes Do Staffing Agencies Make to Gain Working Capital? It’s understandable to grow frustrated about the lack of cash and payroll funding for your temporary agency, especially when you are gazing at a stack of unpaid invoices. This could lead to you instilling practices that will eventually stunt your agency’s growth: Adding excessive late fees to any client who pays you after 30 days Making late payments on your operating costs Not meeting payroll and paying your employees on time Being overly aggressive in your collection techniques Only providing staffing for clients who promise to pay invoices within 30 days These strategies might be useful for increasing cash flow short-term but is not a good way to keep clients. Over time, they will look elsewhere for their staffing needs, and your staffing talent will find a firm that pays on time. Not paying your overhead costs on time will affect your credit, and the ability to get financing in the future. What solutions are there to meet your financial obligations? How About a Business Loan for Working Capital? One solution is to ask a bank or other lender for a working capital loan. This option takes up a good deal of your time, and you will have to provide the bank with stacks of paperwork. Your business credit is scrutinized, and you could be asked to present a business plan for the future of your staffing agency. Most likely, your company will be not be approved after going through a circus act to even be reviewed by the bank. Even if you make it through the application process and get approved for the loan, you have to commit to making monthly payments to absolve the debt. This only exacerbates the issue of having to wait 60 days to get your hands on the cash from an unpaid invoice. A straight business loan is useful in some situations, but not helpful for the structure of a temp agency. How Do Factoring Companies Help Staffing Agencies? The complicated structure of staffing firms makes working with a factoring company ideal. They are payroll funding experts and are used to working in complex funding situations. Your largest assets lie in your staffing talent, and the invoices that they have generated. Factoring companies are able to leverage these unpaid invoices as a type of collateral for securing the financing your agency needs to meet its weekly financial obligations. A Factor gives you cash for unpaid invoices upfront. This funding type is not a loan so you will not be subject to any form of interest on the money advanced to you. Non-recourse invoice factoring gives you the flexibility to get the cash you need immediately in the way you need it. You can choose which invoices to hand over to the lender, and on which you can wait to receive payment. The invoices signed over become the responsibility of the factoring company for management and collection. Factoring companies have deep experience working with a soft-touch and representing the...

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05/31/16 – Paragon Financial Announces Funding Program for Start-Up Staffing Companies

Posted by on May 31, 2016 in | Comments Off on 05/31/16 – Paragon Financial Announces Funding Program for Start-Up Staffing Companies

MIAMI, FL- Paragon Financial Group, a 22-year old non-recourse invoice factoring company, announces a new funding program for start-up staffing companies. The program provides non-recourse, credit protected working capital for start-up staffing agencies dealing with growing payrolls in the fast paced staffing industry. According to Staffing Industry Analysis, the US staffing market is projected to grow 6% in both 2016 and 2017 to nearly $150 billion with the strongest areas in the healthcare and education segments. Chris Curtin, Paragon Financial’s National Sales Manager, said, “With 22 years of staffing funding experience, we have a deep understanding of where individual staffing companies are in their growth curve and where the industry is headed. Paragon helps start-up staffing clients with working capital solutions through periods of change allowing them to focus on building their business rather than worrying about the problems of staffing payroll issues caused by limited or sporadic cash flow.” Curtin goes on to say, “We have also created a guide on How to Start your Own Staffing Agency that we hope helps budding staffing entrepreneurs on their journey of business ownership.” According to David Hale of Staffing Industry Analysis, the on-demand economy is pushing rapid development of new software tools for HR. Successful staffing companies will partner with new, agile technology providers, implementing cloud-based SaaS solutions. These changes require investment and Paragon Financial’s start-up staffing program helps fund these initiatives. About Paragon Financial Group For over two decades, US companies across all industries have selected Paragon Financial to meet their working capital needs. Non-Recourse Accounts Receivable Facilities are available up to $3,000,000 USD. From government contractors to distribution companies, from staffing agencies to manufacturers; entrepreneurs have successfully grown their company with Paragon Financial’s Non-Recourse Invoice Factoring, Accounts Receivable Management, Credit Protection and Purchase Order Financing Programs. For fast funding now, please call 888-271-9347 ext 1 or visit our secure website...

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Staffing Company Growing Pains, Payroll and Booming Temp Jobs

Posted by on April 14, 2015 in Payroll Funding | Comments Off on Staffing Company Growing Pains, Payroll and Booming Temp Jobs

Temp jobs in the US are booming with a 57 percent increase from 2009 to 2014. This means staffing companies are also feeling the boom. A growing staffing company equals an increased need for working capital, higher payrolls, and larger overhead overall. Nearly 3 million people are employed in temporary jobs from Lakeland, Florida to Omaha, Nebraska. Analysis from CareerBuilder shows that number will continue to rise. Temporary employment is expected to increase 13 percent (354,877 jobs) from 2014 to 2019.  Staffing agencies need to be financially prepared to handle the additional workload. CareerBuilder put together a list of fast-growing occupations for temporary employment. Hot areas for temporary employment include the following with the total number of higher paying temp jobs listed: Computer Systems Analysts (2014) 11,802 (2019) 14,024 Accountants and Auditors (2014) 11,130 (2019) 12,654 Management Analysts (2014) 10,923 (2019) 12,418 Computer User Support Specialists (2014) 19,597 (2019) 22,276 Software Developers, Applications (2014) 11,698 (2019) 13,292 Customer Service Representatives (2014) 88,610 (2019) 100,642 Heavy and Tractor-Trailer Truck Drivers (2014) 25,075 (2019) 28,479 Registered Nurses (2014) 46,052 (2019) 52,296 Maintenance and Repair Workers, General (2014) 23,806 (2019) 27,027 Machinists (2014) 21,493 (2019) 24,391 Construction Laborers (2014) 50,505 (2019) 57,275 Secretaries and Administrative Assistants, Except Legal, Medical, and Executive (2014) 68,486 (2019)...

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Financing for Staffing Companies

Posted by on April 10, 2015 in Business Financing, Payroll Funding | Comments Off on Financing for Staffing Companies

Founded in 1994, Paragon offers Fast Growing Labor, Guard, IT & Staffing Companies an alternative to bank financing. When banks either WILL NOT loan or offer TOO LITTLE funds, Paragon promptly supplies a steady stream of cash through Invoice Factoring. Our Programs Invoice Factoring, Accounts Receivables Financing & Credit Protection 90% Advance Rates with Online Invoice Submission, Reporting and D&B Reports The Famous Paragon “Soft Touch” with your Clients Paragon can move Quickly on New Client or High Growth Client Approval versus slow Bank Underwriting. Optional Back Office services are also available. Target Clients Startups, Turnarounds, Bank Exiting and Non or Under-Bankable Relationships Personal Credit of Owner is not an issue; we look at your customer’s ability to pay Fast Growing Client with sales of $25,000-$3,000,000 per month Companies Looking for Payroll Financing Paragon can fund with Client Concentration & Tax Issues! Staffing Companies for All Industries in All 50 States What is needed to get started? A Simple One-Page Application! For 22 years, Paragon Financial Group has provided working capital solutions for growing and non or under-bankable companies throughout the United States. For fast funding or more information, please contact Chris Curtin, National Sales Manager at helpdesk@ParagonFinancial.net, 561-758-6285 (cellular) or toll-free...

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Top Industries in Temporary Contract Staffing

Posted by on March 18, 2014 in Small Business | 1 comment

Top Echelon Contracting’s 2013 contract placement statistics show that contract staffing was particularly strong in the following industries.  The list is in order of the strongest industries from the top: Healthcare Business Professionals and Support Staff Engineering and Manufacturing Information Technology Finance and Accounting HR/Legal/Recruiting Sales/Marketing Are you a staffing agency growing and in need of working capital for things like payroll?  Give us a call, fill out the form to the right or chat with us now to find out how we can help you through invoice factoring or receivable...

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