During an economic downturn, the use of staffing firm services changes with uncertainty. Because many companies use staffing firms for their flexibility, when a recession hits based on their core strategy, sometimes the first costs to go often are contingent workers based on other strategies. Your customers may be concerned of a blow to employee morale or may involve the cost of severance or separation packages. Until recovery starts and the need for temporary workers increases, you need a plan in place to maintain your firm’s operations while revenue and margins may be decreasing.
Here are several reasons why Madison Resources should be your trusted partner during economic turbulence.
Gain Access to Capital
If your staffing firm lacks an appropriate amount of liquidity, then you need fast access to capital to ensure proper cash flow. You can continue to operate only for a limited amount of time with diminished revenue. Potentially being approved for a bank loan or line of credit can take months. If a loan or line of credit does go through, you pay interest on what you borrow and increase your firm’s debt load. A better option is to take advantage of 100% payroll funding through Madison Resources. Madison Resources improves cash flow and profitability by offering quick access to capital. Continue to pay your employees and fulfill other obligations on time.
Fund Diversification of Your Offerings
If your staffing firm is highly specialized or focused on a certain industry, then you may want to diversify your offerings to potentially reduce the impact of economic turbulence. This is especially important if your firm is dependent on a few key accounts. If these clients eliminate their use of your staffing firm, your firm is significantly at risk. Because every industry can be affected by a recession, expanding your offerings into more recession-proof verticals can help your firm remain viable. Turn to Madison Resources to gain insight into your staffing firm’s potential expansion.
Outsource Your Back Office
If your staffing firm’s business slows due to economic instability, then you may need help getting customers to pay on time. Some customers may decide to stretch their payments or not pay you at all. Letting Madison Resources take over your customers’ credit checks, cash applications, billing, and collections processes increases your odds of receiving payments faster. To further enhance your back office, we can take over payroll processing, payroll tax filing, and W-2 processing so you have more time to focus on other responsibilities.
Make Madison Resources Your Funding and Back Office Services Partner
Trust Madison Resources as your staffing firm’s funding partner during economic turmoil. Our suite of payroll funding and back-office services, combined with our expert staffing industry guidance and technology, position us as your top choice for a funding partner. Get started with us today.