Why Factoring is the Best Option for Staffing Talent AgenciesStaffing talent agencies, especially those specializing in entertainment have a very precarious financial existence. Yes, some of the talents on their stable are popular and are the most sought after. These talents usually command higher prices than the ordinary ones. So, you may think that their talent managers will also enjoy a big cut from their talent fees.
But it is also very well known that entertainers as well as their managers can sometimes earn so much and sometimes they don’t even earn at all. Being in the entertainment business, they are also paid after their performance. Usually, their payments are in the form of post-dated checks, with some maturing in 30 days, some in 45 days and some in 90 days. Meanwhile, they have office employees to pay, and utility bills to settle.
It is during those times that a factoring company can be of great help. They are willing to buy the invoices that you have issued to your clients, in exchange for a discount that you both will agree upon. If you will ask for financial assistance based on your invoices, their interest charges will be significantly lower than those being charged by the banks.
Factoring is Your Best Option
There are several reasons why factoring is the best option for staffing talent agencies whether you are dealing with talents for entertainment or for office and management positions:
- • You Get Your Cash Faster
With a factoring company, you will be able to solve your cash flow problems quicker. Why? They will release your funds in a matter of a few days, not months. If you will go to a bank for an emergency loan they will let you wait for 30 days or even longer before they let you know if your loan is approved or not.
- • You Will Not Be Subjected to Credit Checking
A factoring company is not interested in your credit rating and credit history. Therefore they will not spend anytime checking your credit background. That means less hassle on your part. It is not a loan that you are applying for. You already have money in the form of invoices. Of course, they are not yet collected but they still represent money just the same.
- • Collateral Is Not Required
Factoring companies look at your invoices as real money although not yet collected. Therefore, they won’t require collateral anymore. As soon as they have your invoices in their hands they will deduct the discount that you both have agreed upon, and give you the balance.
This arrangement is the best that you can hope for if you are experiencing financial hardships. Even if you have not yet collected your payments, you already have money in hand to settle your bills.
Staffing talent agencies would do well if they will seek the financial assistance of factoring companies such as NeeBo Capital. We have the lowest charges in the industry starting at 0.59% only. Our financial arrangements are easy and flexible and we also don’t require monthly minimums.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
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General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company