Staffing Company Business Plan
It is not a loan, so you won’t sully your balance sheet with debt to repay.
You are only limited by your own invoicing, so as long as you are doing business you have the ongoing potential for factoring.
Financing your start-up staffing agency requires diligence, perseverance, and the wisdom to know which option is right for your staffing and recruiting firm.
Factoring for staffing agencies is a reasonable option for the recruiting industry.Factoring fees are low and designed to be competitive, and staffing factoring companies have the expertise to navigate the industry with ease.To qualify for staffing factoring, you must invoice other businesses.Some of which may involve a pledge of collateral – which a startup staffing agency may not be able to provide.Although the past few years have brought on more relaxed criteria, it is still incredibly difficult for a business without any credit or with less than perfect credit to qualify without the collateral.If you’re starting a new staffing agency, you know there’s not much time to relax.Figuring out financing is one of the first tasks to check off your to-do list.Work must be completed prior to submitting a factoring request, and in most factoring arrangements there is a requirement that you repurchase invoice that goes unpaid for a certain amount of time – so working for unreliable clients can work against you.If you’re planning on starting a staffing agency, there are a lot of tax and employment forms you need that vary by the state you’re located.In order to qualify, your staffing agency should be in business for at least six months and you, as the business owner, should have a credit score of at least 500.However, like an unsecured business loan, there is no collateral necessary to receive this type of funding, making it easier to qualify than other options.