Invoice factoring solutions for your Staffing Company business

In Los Angeles, Accounts receivable factoring is a financial product that is readily used by staffing company businesses that need working to grow to the next level and maintain sales momentum. Factoring can provide your construction business with debt free cash flow, though: real, year in business, or the credit situation. Funding criteria is based primarily on the creditworthiness of its customers.

How Factoring works: The factoring company buys invoices that qualify at a discount, and immediately sends proceeds of approximately eighty percent the seller. A few hours after the presentation of its accounts receivable, a company had lacked cash has now obtained working capital needed for the following items:

• Business Development
• Hire employees
• Maintenance margin
• Purchase of equipment
• Paying taxes

The balance is held in a reserve account and forwarded to the company as soon as picked up the bill - minus the small fee. Sounds simple?

Unfortunately, many staffing company businesses overlook factoring services, which is ironic because factoring is often the most ideal for cash flow solution for such a dilemma. While not all companies a great prospects for factoring, the vast majority of them are.

To ensure that your experience of factoring is simple, effective and affordable, there are three things you should insist on:

A flat rate

This takes the guess work out of the process. You know exactly what you are paying for the service.

Zero interest

A true factoring is a debt free financial solution with a fee based system. There is no advantage to amassing a large loan with payments every month regardless if you needed the use of the money or not.

Financial stability

Make sure your factoring company provides cost effective solutions. In fact, a factor that is licensed as a commercial lender and has been in business for over 15 years is typically a good sign of stability for your staffing company company. You want invoice factoring that is smooth and this can only be achieved through the use of experienced factors.

Conversely, if you don’t find these items then red flags should go up, and "head for the hills" (seriously, avoid these problems):

Avoid Rolling interest

Avoid all interest. Factoring, done the right way, not a line of credit, can provide a debt free solution for companies who need extra money.

Avoid Hidden fees

Be sure to ask your prospective invoice factoring companies of an example of an invoice fee calculation. Also, ask them if they have fees that charge on all invoices whether factored or not. You should be able to ask them if these are my total fees after an example is given to you? If they say no, or trip or appear evasive on this issue, run, do not walk! You can find a better opportunity that will not cost a small fortune.

If your staffing company business needs cash flow quickly, put your invoices to work for you. Why wait 45, 60, even 90 days, when taken can provide instant access to financing for all your business needs. Find a factoring company trusted and get straight forward, no solutions of interest to their cash flow problems in a larger city like Los Angeles.

The real cost to your business is not the cost of factoring, it’s the cost of not factoring and loosing the sales momentum your company could have had.

For more information about www.invoicefactoringus.com

For more information about www.invoicefactoringus.com