Staffing firms face a complex, demanding business landscape. Margins are tight and client expectations continue to increase. As a result, competition has been favoring larger, consolidated firms over smaller ones. In order to level the playing field, smaller staffing firms need access to the financial resources larger firms have to continue effectively doing business. For this reason, many businesses are turning to flexible funding to fill their business needs. Find out what flexible funding is and how it can help your staffing firm.
No Increasing Debt Load
Taking advantage of flexible funding means not taking on new debt. Rather than applying for a bank loan, which requires financial review, a limited level of spending and payment requirements, flexible funding involves a less complex application, shorter waiting period and limit based on your receivables. Rather than paying interest and late fees with a bank loan, flexible funding means selling an asset at a discount and owning the cash. Because flexible funding isn’t a loan, it doesn’t increase your liability or have an adverse impact on your financial ratios. Rather, flexible funding converts your book debts into liquid cash.
Flexible funding shortens your cash collection cycle. Rather than waiting 30-60 days for your clients to pay, you sell your invoices for a reduced amount to a flexible funding company. Freeing up cash means gaining access to an opportunity for growth. Your cash boost can help with capital expenditures, securing new orders or fulfilling an unforeseen need. You have funds in place to cover payroll, pay bills or grow your staffing firm.
Potential Recovery of Revenue
When you take advantage of flexible funding without recourse, you’re able to recover debt that might otherwise have gone unpaid. Because a funding company decides whether to purchase your accounts receivable based on the creditworthiness of each client, once an invoice is purchased, the funding company owns the associated debt. If the funding company cannot recover the debt, you still get to keep the funds.
Flexible funding provides financing more rapidly than other types of financing. The process is much faster and easier than applying for a bank loan. Because it requires less documentation, you can receive funding in 48 hours or less. Traditional loans can take weeks or months to secure.
No Collateral Needed
With flexible funding, advances are extended based on the strength of your accounts receivable. The funding company takes into account the creditworthiness of each client and the amount of their invoice to determine how much funding to offer. Unlike cash credit and overdrafts, flexible funding requires no collateral.
Gain Flexible Funding Through Madison Resources
For over 25 years, Madison Resources has provided flexible funding for staffing companies. Whether helping your startup get off the ground or providing the support you need to grow your business, we improve your cash flow and profitability by offering quick access to capital. Start the application process today.