Factoring service
for your employment agency
How factoring works
for employment agencies
Payouts
Employment agencies can use factoring as a service to their freelancers and staff by offering them the option to receive their earnings almost immediately. Instead of waiting for clients' standard payment terms, employees can opt for an advance payment via factoring, where the employment agency takes on the role of debtor. This initiative not only strengthens the relationship with staff, but also makes the agency more attractive as an employer.
Own debtors
Employment agencies can also choose to factor their own outstanding invoices. This means that they can receive their debtors' money more quickly by selling these invoices to a factoring company. The result is a direct improvement in cash flow, allowing the agency to cover operational costs, invest in growth and ensure financial stability.
The key to financial growth for employment agencies
Looking for a way to optimize your employment agency's cash flow and get faster access to your hard-earned money? Factoring can be the solution you need. With this financial strategy, you can turn waiting for payments into readily available funds, making your operations smoother and more efficient. Whether it's about paying salaries on time or investing in growth, factoring offers the flexibility and financial stability to achieve your ambitions.
The benefits of factoring
D
Cash flow boost for employment agencies with factoring
In the world of employment agencies, smooth cash flow is worth gold. You know how important it is to be able to switch quickly, whether it's about paying salaries or seizing new opportunities. With factoring, you get that freedom. In this blog, we show how factoring works like a turbo for your cash flow and what it can mean for your employment agency. Curious? Read on to learn how factoring can help you manage your finances smartly and grow your agency.
Frequently asked questions
How do I start factoring for my employment agency?
Discover the possibilities of factoring for your employment agency in a personal online conversation, where we can put together a customized service. Plan here make an appointment.
What is factoring and how does it work for employment agencies?
Factoring is a financial service that helps employment agencies manage their cash flow. It works like this: the employment agency sells its outstanding invoices to a factoring company, which then immediately pays a percentage of the invoice value to the employment agency. The factoring company also takes over responsibility for collecting payments and takes care of any risks of default. This enables the employment agency to get immediate access to the money they need, without having to wait for payments. You can also offer factoring services to your staff or freelancers to improve services. We can offer a customized solution.
Can all employment agencies use factoring?
Most employment agencies can use factoring regardless of their size or the sector in which they operate. However, it is important that the employment agency has outstanding invoices that meet the criteria of the factoring company, such as minimum invoice value and creditworthiness of the debtors. Factoring is particularly beneficial for agencies that have to deal with long payment terms, who want to accelerate their cash flow or offer better services to their staff or freelancers.
How does factoring relate to traditional lines of credit or employment agency loans?
Unlike traditional lines of credit or loans, which generate debt and interest, factoring is a form of debtor financing that is not considered debt. Factoring provides immediate liquidity based on outstanding invoices without the need to incur debts or provide collateral. This makes factoring an attractive option for employment agencies that want to improve their cash flow without increasing their financial burden.