Why Factoring Can Help Cash-Strapped Tech StaffersSpecialization is the hallmark of today’s businesses. For instance, instead of having their own Human Resource Departments, most companies hire tech staffers to screen job applicants. This is a cost-effective measure because a company doesn’t have to pay continuously for the salary of its HRD staff. You only pay for the services of a tech staffer if you are screening applicants when there is a particular job opening in your company.
Not All Things Are Rosy Though
By all reasons, you would expect that companies providing this kind of service will grow in number and in income. However, the system of payments being used today by their clients puts them in a financial bind. Most of their client companies pay their bills with checks that will only mature from 30 to 90 days. Meanwhile, the staffing company needs to pay the salary of his employees on time, as well as settle the bills for all the company’s operational expenses.
Cash Flow Problem is Common
The inadvertent result of all these is the tightening of cash. When the collectibles of tech staffers are tied up for months, they will not be able to settle their bills. If they can’t find an immediate remedy, their employees will find other profitable endeavors and their suppliers will stop delivering their goods.
Factoring to the Rescue
Fortunately, there is a quick help that can get you out of the problematic situation you have fallen into. There are factoring companies that are willing to give you cash in exchange for your invoices. The amount that they will give you will depend on the total amount indicated in your customers’ invoices.
Factoring companies are willing to buy your invoices for an agreed discount. You can also choose to “borrow” money by agreeing on a certain interest charge. Actually, a factoring company is not a bank that loans you money with interest and requires you to cover it with collateral.
Factoring is Better than a Bank
If you are continually experiencing cash flow problems, your best option is to go to a factoring company, not a bank. This is for the following reasons:
- • A factoring company will release your cash in a couple of days only. A bank will let you undergo their normal bank loan processing and approval. This could take somewhere between 30 to 90 days or even longer.
- • A factoring company will not subject you to any kind of credit checking. They will not scrutinize your credit history or your credit rating. They are more interested in the credit rating of your biggest customers.
- • A factoring company will not require collateral. They consider your customers’ invoices as cash – only still to be collected.
A factoring company such as NeeBo Capital is really your best option in solving your current and future cash flow problems. The interest they charge to tech staffers is the lowest in the industry being only 0.59%. They will not require you any monthly minimums and their financial arrangements are very flexible.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
Quick Link to Financial Resources:
|Purchase Order Financing||Accounts Receivable Financing||Asset Based Lending Options|
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