The Significance of Factoring In A Financially-Demanding Temp Agencies BusinessThe day you decide to put up a temp agencies business is the day you prepare yourself to close it sooner or later because it’s only a matter of time before your business has difficulty beginning and ending with your cash flow. This kind of business is not cheap.
No Doomsday Scenario
Everything should be in tip-top condition every time all the time. Just the initial capitalization would have eaten ¾ of your investment because you constantly need to upgrade equipment, replace or repairs the parts, maintain hygiene and sanitation, and purchase other office equipment.
This doomsday scenario need not occur in your business. Have a factoring company which specializes in providing services to a business like temp agencies. Take into consideration that you are not in the banking business, yours is a fitness equipment development company, so why do you extend credit to customers who are slow payers?
Cash Out but No Cash In?
Look at the accounts receivable you have that are 30, or more, days and then look at your expenses: operations, payroll, purchase or upgrade, tax, logistics, and other necessities such as utilities. You do the math and take a close hard look at what your business has become: you spend funds everyday but have to wait a month or more to get paid for services you have already delivered.
This is where factoring comes in. Unlike banks or other financial institutions, a factoring company will not grill you on your financial situation or ask collateral for a loan. Your cash flow is replenished by “selling” your invoices to a factoring company that will provide you with the cash advance that you need immediately and does the collecting of due payments from your customers.
Benefits of Factoring
This is the scenario all businesses find ideal. And all a business has to do is get touch with a reputable factoring company to avail of these and other benefits such as giving you cash advance rates which are above average, a flexible contract, processing your invoices, having experienced professionals handle and manage your credit account, and providing you with personalized service.
A dwindling cash flow resulting from invoices which are slow-moving is cause for alarm in a business environment. Insufficient funds lead many businesses to go to banks and other high-interest financial institutions and when a business continues to have its invoices tied up yet still has to pay the principal and interest to a traditional lending entity, bankruptcy cannot be far behind.
How NeeBo Capital Can Work for Your Business
NeeBo Capital can help you do away with loan payments, increase your purchasing power, improve your credit rating, provide you with additional funds to expand your marketing efforts, regulate your tax payments and payroll, and improve your company’s overall financial status. For engaging the services of a factoring company, all that will be required of you are the creditworthiness of your customers, the average size of your accounts receivables, and your company’s billing volume on a monthly basis. These are requirements that are definitely less rigid that those of a bank’s or traditional lending institution.
If you own one or two temp agencies let NeeBo Capital work for you by checking out their website at www.neebocapital.com today and finding out how they can increase your cash flow and prevent your business from incurring debts and reduce not only the time spent on collection of payments from your customers but also the costs related to collection. NeeBo Capital also provides services other than factoring such as asset lending, restructuring of payables, financing of commodities, purchase orders, franchises, contracts, and supply chains, credit insurance, equipment leasing, and merchant card services.
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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