Hospitality Staff Factoring AdvantagesThe importance of getting bills and personnel paid on time can never be overemphasized especially in the hospitality industry. However, there are times when the money just doesnít arrive in time. If you have bills to pay or are purchasing new equipment, this can be disastrous. Instead of incurring debt by securing a loan, factoring is the better option.
Why Factoring is Critical for Staffing
A factoring company doesnít just collect your unpaid bills, as they can do so much more. With the money they bring in, your staffing business is assured of getting the cash flow necessary to expand and maintain stability. A factoring company moreover, has the experience necessary to address your needs and come up with the best solution.
Factoring companies today are designed to work with different kinds of staffing firms. It doesnít matter if yours is large, medium or small as they have the means to serve you. A long running staffing firm can use factoring if they are low on funds or cannot wait for the payment. Similarly, an upstart staffing company can avail of the same factor and grow.
A factoring company not only has lower rates than other lenders, but thereís no charge for customer analysis. In other words, your entire situation can be analyzed beforehand so youíll know what to expect before agreeing.
How the Factoring System Works
If youíre not familiar with hospitality staff factoring, itís easy enough to understand. Basically what happens is they will purchase your invoices at around a 90% discount so you get the money right there and then. The next step is the factor bills your client according to the terms and conditions you had with them.
Once the client has paid, the rest of the money is given to you minus their charge. As you can see, the process is quick and easy. Whereas with a bank youíll need to wait months to get a loan Ėif at all- a factoring company works much more quickly. Besides quick approval, you get the money usually in 24 hours, and they handle the collections.
For staffing companies, the fact that the factoring company takes care of the collection... is a lifesaver. Running a staffing company difficult enough and you donít have time to go out collecting. In addition, youíll have the cash at hand to pay for all the expenses and keep your business running smoothly.
If youíre not familiar with the process or still have some questions you want answered, the factoring company will guide you every step of the way. After entering an agreement with them, an account executive will be sent to assist and answer your questions. With factoring, youíll know exactly what is going on all the way.
If youíre interested in acquiring the services of hospitality staff factoring, there is NeeBo Capital, which offers rates at 0.59% - 1.5%. You can also get a free quote on their website, and there are no minimums or financials needed from you, something other companies donít provide
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