Financing Options for Staffing Firms

Staffers, there are some great ways to start or expand your business by turning your accounts receivable into cash without giving up any ownership in your business.

Basically, there are three main financing sources for staffing companies: factors, banks and funding companies. All will provide financing without giving up ownership of your business. But only funding companies specialize in the staffing industry and will truly provide enough capital for a rapidly growing staffing company.

In fact, funding companies are now the main stream providers of funds for the independents. Some funding companies, like my employer, provide cost and time saving, essential services such as web-based front and back-end software, payroll and tax processing, invoicing, on-line reporting access, receivables management and more.

Below is a chart with data provided by E & Y LLP. It highlights the differences between financing providers and should help which one would be best for your company.