Many staffing firm owners are too familiar with the challenge of acquiring capital to finance the growth of their business or meet cash-flow shortages. Loans and credit may be limited or not available at all. That’s when many owners look to accounts receivable financing, also known as Asset Based Lending or payroll factoring, as a viable option.
In many cases, accounts receivable financing / payroll factoring can be the best alternative to raising working capital without giving away equity or taking on debt. Accounts receivable financing is one of the oldest forms of commercial finance.
How does it work? Advances are made against a company’s customer invoices to provide the cash flow required to fill the gap between when businesses provide service and when their customer pays.
These advances are arranged on a sliding scale, up to 90 percent. This helps businesses to determine cash flow needs from week to week. Lower rates are provided as a reward for high- volume growth.
Concurrent with advances, firms also can elect to outsource back office and administrative tasks such as payroll and related chores, billing and collection functions. These customized plans allow firms to focus on their core business of selling their staffing services.
Meanwhile, AGR Financial will take care of providing the money.
Instead of watching your capital sit idle on your balance sheet because of unpaid invoices, accounts receivable financing or payroll factoring frees up your money so you can put it to work in growing your business.
Accounts receivable financing does not require selling equity and that’s a game changer for many staffing companies. By choosing accounts receivable financing, you will retain sole control of your company while still getting the working capital you need to operate.