Factoring is a financing method where a company sells its accounts receivable to a third-party financial company, known as a factor, at a discounted price. Factoring is a popular financing option for staffing agencies, which often have to wait 30, 60, or even 90 days to receive payment from their clients.
By factoring their invoices, staffing agencies can receive immediate payment for their services, which can help them manage their cash flow and grow their business.
However, not all factoring companies are created equal. Some offer better rates and services than others, and it’s important for staffing agencies to choose a reliable and trustworthy factoring partner. In this article, we’ll explore the 15 best factoring companies for staffing agencies.
Best Factoring Company for Staffing Agency
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Paragon Financial Group
Paragon Financial Group is a factoring company specializing in providing staffing agency financing solutions. They offer non-recourse factoring, which means that they assume credit risk for their clients’ invoices. They also offer credit protection, which protects their clients from non-payment by their clients. Paragon Financial Group has been in business since 1994 and has funded over $3.5 billion in invoices.
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Riviera Finance
Riviera Finance is a factoring company that offers solutions to various industries, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection. They also provide online account management tools that allow clients to manage their invoices and payments in real time. Riviera Finance has been in business since 1969 and has funded over $4 billion in invoices.
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TCI Business Capital
TCI Business Capital is a factoring company that specializes in providing financing solutions to small and medium-sized businesses, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. TCI Business Capital has been in business since 1994 and has funded over $10 billion in invoices.
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Interstate Capital
Interstate Capital is a factoring company that offers solutions to various industries, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection. They also provide online account management tools that allow clients to manage their invoices and payments in real time. Interstate Capital has been in business since 1993 and has funded over $5 billion in invoices.
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BlueVine
BlueVine is a factoring company that specializes in providing financing solutions to small and medium-sized businesses, including staffing agencies. They offer non-recourse factoring, which means that they assume credit risk for their clients’ invoices.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. BlueVine has been in business since 2013 and has funded over $10 billion in invoices.
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Triumph Business Capital
Triumph Business Capital is a factoring company that specializes in providing financing solutions to small and medium-sized businesses, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. Triumph Business Capital has been in business since 2004 and has funded over $50 billion in invoices.
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Factor Finders
Factor Finders is a factoring company that specializes in matching businesses, including staffing agencies, with the right factoring partner. They work with a network of over 50 factoring companies to find the best financing solutions for their clients.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. Factor Finders has been in business since 2012 and has helped businesses fund over $5 billion in invoices.
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Accutrac Capital
Accutrac Capital is a factoring company that specializes in providing financing solutions to trucking and transportation businesses, including staffing agencies that provide drivers. They offer both recourse and non-recourse factoring, as well as credit protection.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. Accutrac Capital has been in business since 2006 and has funded over $1 billion in invoices.
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Charter Capital
Charter Capital is a factoring company that offers solutions to various industries, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection. They also provide online account management tools that allow clients to manage their invoices and payments in real time. Charter Capital has been in business since 1990 and has funded over $1 billion in invoices.
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CapitalPlus Equity
CapitalPlus Equity is a factoring company that specializes in providing financing solutions to small and medium-sized businesses, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. CapitalPlus Equity has been in business since 1998 and has funded over $3 billion in invoices.
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TBS Factoring
TBS Factoring is a factoring company that specializes in providing financing solutions to trucking and transportation businesses, including staffing agencies that provide drivers. They offer both recourse and non-recourse factoring, as well as credit protection.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. TBS Factoring has been in business since 2004 and has funded over $10 billion in invoices.
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Bay View Funding
Bay View Funding is a factoring company that offers solutions to various industries, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection. They also provide online account management tools that allow clients to manage their invoices and payments in real time. Bay View Funding has been in business since 1985 and has funded over $4 billion in invoices.
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American Receivable Corporation
American Receivable Corporation is a factoring company that specializes in providing financing solutions to small and medium-sized businesses, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. American Receivable Corporation has been in business since 1979 and has funded over $10 billion in invoices.
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Interstate Capital Corporation
Interstate Capital Corporation is a factoring company that specializes in providing financing solutions to small and medium-sized businesses, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. Interstate Capital Corporation has been in business since 1993 and has funded over $5 billion in invoices.
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RTS Financial
RTS Financial is a factoring company that specializes in providing financing solutions to small and medium-sized businesses, including staffing agencies. They offer both recourse and non-recourse factoring, as well as credit protection.
They also provide online account management tools that allow clients to manage their invoices and payments in real time. RTS Financial has been in business since 1995 and has funded over $5 billion in invoices.
Factors to Consider When Choosing the Best Factoring Companies for Staffing Agencies
Choosing the best factoring company for a staffing agency can be challenging, as there are many factors to consider. In this section, we will discuss the key factors to consider when choosing the best factoring companies for staffing agencies.
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Industry specialization
One of the most critical factors to consider when choosing a factoring company is industry specialization. Not all factoring companies specialize in staffing agencies or have experience in the industry. It is important to choose a factoring company that understands the unique needs and challenges of staffing agencies and has experience working with them.
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Contract terms
Another important factor to consider when choosing a factoring company is the contract terms. The contract should be clear, concise, and easy to understand. It should outline the factoring company’s fees, interest rates, and any other costs associated with the service. Staffing agencies should read the contract carefully and ask questions if they do not understand anything.
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Recourse vs. non-recourse factoring
Another important factor to consider when choosing a factoring company is whether they offer recourse or non-recourse factoring.
Recourse factoring means the staffing agency is responsible for the payment if the client does not pay the invoice. Non-recourse factoring means that the factoring company assumes the risk if the client does not pay the invoice. Non-recourse factoring typically comes with stricter contract terms and higher rates.
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Credit protection
Credit protection is another important factor to consider when choosing a factoring company. Credit protection provides insurance against non-payment by clients, which can reduce the risk for staffing agencies. Staffing agencies should look for factoring companies that offer credit protection as part of their service.
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Customer service
Customer service is an essential factor to consider when choosing a factoring company. The factoring company should be responsive, helpful, and easy to work with. Staffing agencies should read reviews from other clients to understand the factoring company’s customer service and overall reputation.
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Online account management tools
Online account management tools can make it easier for staffing agencies to manage their factoring account. Staffing agencies should look for factoring companies that offer user-friendly online account management tools that allow them to view their invoices, payments, and other account information.
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Interest rates and fees
Interest rates and fees are other factors to consider when choosing a factoring company. Staffing agencies should compare the rates and fees of different factoring companies to find the most affordable option. However, it is important to note that lower rates and fees may come with stricter contract terms or less flexibility.
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Funding speed
Funding speed is another important factor to consider when choosing a factoring company. Staffing agencies should look for factoring companies that offer fast funding, as this can help them maintain consistent cash flow and cover their expenses and payroll on time.
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Factoring company reputation
Finally, staffing agencies should consider the factoring company’s reputation when choosing a factoring company. They should read reviews from other clients and check the factoring company’s rating with the Better Business Bureau to understand the company’s reliability and overall customer experience.
In conclusion,
Overall, factoring can be an excellent financing solution for staffing agencies, providing them with access to quick and flexible funding while reducing the risk of non-payment by clients. The 15 factoring companies listed in this article are among the best in the industry, offering a range of services and expertise to meet the unique needs of staffing agencies.