As a growing staffing company, you may experience a faster growth than what your operating capital calls for. You may need to take on more accounts and you may not have that appropriate employee staff to cover existing accounts. It can be very challenging when you cannot meet your staffing payroll. To first address a potential shortfall in payroll, consider using asset based lending.
What Is Asset Based Lending?
Asset Based Loans (ABLs) are a form of secured lending that is based on the quality, value, and adequacy of the collateral that the issuer requests. Asset-based lending offers a powerful financing solution for midsized and larger companies that seek to maximize the value of their assets, achieve greater liquidity, and pursue new growth opportunities. Any company seeking 10 million to 35 million in financing, can gain from the flexibility of an asset based loan. Many industries can gain versatility, including
- Service companies
Many staffing companies have gained flexibility and versatility with asset based lending through Fast and Easy Funds. Most banks and lenders do not offer more than a 40%-50% inventory advance. But Fast and Easy Funds has arranged multiple 65% inventory advances for our clients. Asset based loans are perfect for high growth companies that do not want their lines of credit capped by a traditional lender. This is why many staffing companies are turning to asset based loans. Asset based credit lines continue growing as your receivables and/or inventory levels rise.
2015 has been growing large financial trends for staffing companies in particular. Payroll financing through an asset based loan can help you protect the cash flow of your staffing agency. An increase in payroll will make a huge impact on your business.
According to the CareerBuilder 2015 Hiring Forecast, temporary placements are on the rise, with 46 percent of employers saying they will hire temporary or contract workers this year, an increase from 42 percent in 2014. Staffing agencies are on the rise and if your payroll cash is a concern, Fast and Easy funds can help you dramatically. When you put together a high advance rate on accounts receivables (85%-90%), with an aggressive advance rate on inventory (65%), the results are the ideal line of credit for maximizing our client’s access to working capital. Fast and Easy has the highest advanced rates in the industry and has worked with many staffing agencies to ensure that their collateral is safe.
Asset based loans are viewed as a more reliable form of lending and staffing companies, as well as everyday businesses, are becoming more aware of the need for this type of collateral. Due to the high demand of job security in our economy, staffing agencies know that they need more employees and, in return, need more payroll. If you are a staffing company or business in need of more collateral, Fast and Easy Funds will offer the best in lines of credit for your company.