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Temp and Staffing Factoring Companies

Staffing Factoring Services: The benefits of invoice factoring can translate into agency growth for businesses in the staffing and temporary employment services industries.

Expedite Cash Flow and Grow Faster with Temp Employment and Staffing Factoring Services

Staffing and temp agency factoring services lead to faster growth. More so than in many other industries, firms such as temporary employment and staffing agencies must lay out a considerable amount of money long before associated revenues are realized.

For instance, long before customer payments come in, an agency may have already spent a significant amount of money on advertising and marketing activities necessary for attracting job listings and candidates, on pre-employment screenings, to fund payroll on successful placements, and in meeting agency overhead and operating expenses.

Employment agencies may find cash flow depleted to the point that growth stalls while they wait for clients to remit payment on open invoices.

Low or inadequate cash flow can slow agency growth with the result being an agency which might then be unable to take on new business, cannot pursue larger, potentially more profitable client accounts, and lacks the capital needed to quickly take advantage of emerging opportunities. This problem can be further exacerbated when strategic marketing decisions are made to extend longer payment terms to staffing and temporary employment clients as a competitive advantage.

Temp agency and staffing factoring companies offer a financial tool that can immediately speed up agency cash flow, by funding client invoices as soon as they are generated. Instead of waiting weeks – or even months – for clients to pay, employment agencies that factor receivables can receive same day funding on client invoices while still extending favorable terms to their clients.

The Invoice Factoring Process for Staffing and Temp Agencies

Invoice factoring speeds up cash flow, generating the capital needed to grow more quickly. Here is an overview of how temp agency and staffing factoring services works to speed up cash flow:

  1. Client services are fulfilled and an invoice is generated. The invoice is factored – or sold – to DB Squared for a fee (as low as 1%).
  2. DB Squared immediately advances funds for up to 98% of the invoice amount. Instead of the temp or staffing agency waiting for the client to pay, speeding up cash flow and enabling faster growth.
  3. Once the customer remits funds for the invoice to DB Squared, the amount held in reserve (see formula below) is also returned to the temp or staffing agency.

For instance, let’s say that a staffing agency is billing their client $5,000 for the first payroll of a new manager. When they choose to factor the invoice with DB Squared, the transaction might look something like this:

  • $5,000 – Invoice generated and factored
  • $4,900 – 98% advanced to agency on the same day
  • $50 – 1% factoring fee
  • $50 – held in reserve and returned to agency after the invoice has been paid

In addition, we offer non-recourse staffing agency factoring services with no surprises, no hidden fees, and no requirement that you sign a long term contract. Plus, you can factor as many – or as few – invoices as you choose. Request information using the quick quote form below or by calling us at 866-855-3640.

Opportunity Cost Calculator

Use our invoice factoring calculator to determine whether factoring receivables could expedite cash flow in your business.

  • Your Current Total Accounts Receivable
    $1,000 $5,000,000+
    $0
  • Your Average Customer Invoice Amount
    $0 $250,000+
    $0
  • Advance Rate for Factored Invoices (Advances usually range from 85-98%)
    85% 98%
    0%
  • Factoring Fee (Factoring fee usually ranges from 1-5%)
    1% 5%
    0.50%

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  • Expedite working capital tied up in customer invoices, without waiting for customers to pay Working Capital Unlocked $0
  • Average Factoring Fee $0

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Improve Cash Flow, Reduce Financial Risk and Grow Faster by Factoring Staffing Invoices

Use our opportunity cost calculator to estimate how much cash flow could be expedited by factoring the accounts receivable customer invoices of your staffing agency with a staffing factoring company like DB Squared.

As a non-recourse staffing factoring company, DB Squared not only assumes the wait (the time that elapses between when a client invoice is generated and when it is finally paid) but we also assume the credit risk for factored invoices.

Request a proposal for staffing receivables financing:

Expedite cash flow and grow your staffing or temporary employment agency.

Factoring Staffing and Temp Agencies —
Rates as Low as 1%

Whether you have considered the benefits of working with staffing factoring companies previously, you are already factoring staffing invoices or you are looking for ways to speed up agency cash flow, we would be happy to provide you with a free, no-obligation quote for staffing factoring services and answer any questions you might have about invoice factoring in general or DB Squared’s invoice factoring services specifically.

Simply complete the quick quote form above or contact us at 866-855-3640 to get started.

We can usually provide a quote for staffing factoring services in 24-48 hours (or even faster). Within just a few days, you could be improving cash flow for your temp employment or staffing company, resolving cash flow challenges and growing your business faster.