Staffing firms in Canada are tasked with matching thousands of people with thousands of temp, contract and perm positions. With such a great focus on sales and service, it can be hard to keep up with cash flow requirements to keep any business stable and secure.
You Have Financing Options
The staffing industry is a competitive environment that sees financially stable staffing firms prosper and achieve business success and longevity. To achieve optimal financial stability you have three financing options for your staffing agency to meet payroll obligations: A line of credit, a factoring firm or payroll financing.
A line of credit is not always the best option for staffing agencies as bankers don’t understand the ups and downs of temp and contract staffing. You may find yourself with a sudden increase in orders but the inability to fill them due to the bank’s refusal to increase the line for payroll purposes. The bank will rarely take future sales into account when assessing your ability to pay a line increase.
A factoring firm buys your invoices and takes anywhere from 2.5-4 per cent for themselves. That percentage might seem reasonable but consider this; a factoring firm’s percentage will increase the longer it takes for the client to pay. In fact, a factoring firm may deny an invoice all together if the client is known to take over 60 days to pay. In the end, a factoring firm may only be able to help you with a certain percentage of your clientele and, as we all know in the staffing industry; clients can fluctuate just as much as temps can. You need a partner that can support your full book of business, no matter what.
The above options offer your employment agency nothing more than payroll financing.
We know your start-up or small to mid-sized staffing firm is faced with the pressure of competing with the multi-national staffing firms that have access to financing, technology, insurance and a bevy of expertise when it comes to HR, legal and government issues. Can you compete with them and gain a level playing field? Of course you can! It’s on this precedent that The Staffing Edge was started over 19 years ago. Our founder, Lou Duggan, a staffing firm owner himself at the time, experienced the disadvantages an independent staffing firm faces such as expensive technology, banking needs that he didn’t qualify for, and a complicated government bureaucracy that took him away from his core competency; sales and service. Since then, The Staffing Edge has grown to foster over 120 independent staffing firms and is recognized for its expertise in the staffing industry.
Wouldn’t it be nice to have a solution tailored for your staffing firm that supports your vision of independence? Here’s what The Staffing Edge package solution for employment agencies contains:
• Payroll Financing
• Full Payroll Processing
• Complete Employee and Employer Remittances
• Exceptional Insurance Coverage
• Credit Checking, Invoicing and Collections
• Receivable’s Insurance
• Worker’s Compensation Management
• Complete Government Compliance
• In house Legislative, Employment and Legal Expertise
• Award Winning Staffing Software