Staffing Companies: Is Your Partner Keeping You Up At Night?

Staffing companies are well positioned for strong growth in today’s economy, but finding the right financial partner and products to allow companies to take advantage of this opportunity may be keeping some execs up at night.

Given the uptick in the economy and hiring picking up, there is an increased demand for staffing companies to fill positions in the United States.  The staffing industry is poised for significant expansion! However, this growth can put companies in a very tight cash flow situation. Temporary staffing companies typically must pay bills, payroll and marketing expenses right away and without road blocks. The challenge to growth is that with increased business comes an increase in expenses and staffing companies need a financial partner that can keep up with this demand and move swiftly.

If this scenario sounds familiar, factoring and asset based lending are both products worth exploring. Factoring and asset based lending are two working capital tools that allow staffing execs to rest easy. Factors and Asset Based Lenders have the ability to be a financial partner that can provide a flexible working capital line and move at a pace that will allow companies to take advantage of opportunities presented today. This alleviates the stress of a potential cash flow shortage.  Business development can take center stage!

Finding the right financial partner, one that understands the staffing industry and can be flexible enough to allow a company to scale at its own pace versus that of a traditional bank loan unlocks the door to corporate growth, allowing businesses to take advance of growth opportunities without losing a wink of sleep.  A working capital facility is the first tool that a staffing company should explore when seeking flexible finance options.

Gulf Coast Business Credit (GCBC), preferred partner of the National Independent Staffing Association (NISA) and a division of Gulf Coast Bank & Trust Co. (GCB), is a working capital provider with a niche in the staffing industry. Twice a year, NISA invites GCBC to attend their conference as a preferred partner in efforts to find ways to support their members with  working capital options. In a recent referral from NISA, GCBC was introduced to a North   Dakota based staffing company that was able to get the working capital they needed by    establishing a $100,000 facility secured by their accounts receivable with GCBC.

If you are interested in learning more about how Gulf Coast Business Credit may be able to assist your business please contact GCBC today at 866-577-8867 or email gcbcinfo@gulfbank.com.

This article was originally published in the October 31st, 2014 edition of the NISA Newsletter.