STAFFING FINANCIAL NEEDS
The Financial Needs Of The Staffing Industry
Every industry comes with its unique set of financial quirks, and the field of staffing and temporary personnel is no exception. From the common use of payroll funding services to the process of ensuring a firm is adequately covered by insurance, there are a variety of challenges that must be tackled on the path to staffing success, and AGR Financial can deliver more than two decades of experience to help your firm prevail.
Making Payroll
The primary challenge for a staffing agency is making payroll regularly. In many industries, payroll can be managed without much thought. When it comes to the temporary personnel field, however, it’s of the utmost importance. Because staffing firms typically invoice their clients for the payment required, the firms are unlikely to be compensated until a certain amount of time passes – sometimes the period is 30 days, sometimes it’s more. Regardless, waiting a month for payment is not an avenue that lends itself to efficiency, and it can make it tough to pay the employees you’ve placed, which must be done in order to avoid heavy regulatory penalties. Granting credit to your customers is a necessary evil, but you are not a bank, so outsource the task!
Almost universally, this means that staffing firms are required to secure outside funding options in order to make payroll, whether through traditional banks or specialized service providers, such as AGR Financial.
Obtaining Funding In A Fluctuating Economy
A characteristic that the staffing and temporary personnel industry shares with most fields is that success often depends on the state of the economy. Since the economy tends to fluctuate relatively regularly, it naturally brings about changes in every industry – in turn affecting the staffing firms from which these industries source their labor.
While poor economic conditions might only inflict limited damage upon a staffing firm, other companies often use staffing services instead of hiring permanently to minimize risk. A booming economy can bring about an increase in business drastic enough that the staffing firm may need substantially more funding than the amount it usually requires. This isn’t always attainable through standard methods, and turning to industry-specific financing options, like AGR, can become both necessary and greatly beneficial in the long run.
Again, you are not a bank, so why finance your clients yourself?
Navigate The Industry With AGR Financial
Successful staffing is something of an art, requiring firms to make each and every decision carefully and operate with the utmost caution at all times. If your temporary personnel firm is in need of funding or professional financial guidance, get in touch with AGR Financial today.