{"id":11668,"date":"2024-09-20T11:25:54","date_gmt":"2024-09-20T11:25:54","guid":{"rendered":"https:\/\/comparedbusiness.com\/uk\/?p=11668"},"modified":"2024-09-20T11:25:57","modified_gmt":"2024-09-20T11:25:57","slug":"invoice-factoring-for-staffing-companies","status":"publish","type":"post","link":"https:\/\/comparedbusiness.com\/uk\/blog\/invoice-finance\/invoice-factoring-for-staffing-companies\/","title":{"rendered":"Invoice Factoring for Staffing Companies: A Detailed 2024 Guide"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"11668\" class=\"elementor elementor-11668\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b573d03 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b573d03\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-eac37f9\" data-id=\"eac37f9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aa0b34c elementor-widget elementor-widget-heading\" data-id=\"aa0b34c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"what_is_invoice_factoring_for_staffing_companies\"><\/span>What is invoice factoring for staffing companies?<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5449472 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5449472\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-28fa3c0\" data-id=\"28fa3c0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cf3d956 elementor-widget elementor-widget-text-editor\" data-id=\"cf3d956\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Invoice factoring for staffing companies is a financial solution that helps bridge the gap between invoicing clients and receiving payment. In the staffing industry, where payroll obligations are consistent and clients often pay on extended terms, cash flow can become strained.<\/p><p>Invoice factoring allows staffing companies to sell their unpaid invoices to a factoring company at a discount. In return, they receive immediate cash which can be used for capital requirements. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-75d0095 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"75d0095\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5c8c55d\" data-id=\"5c8c55d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bd38012 elementor-widget elementor-widget-heading\" data-id=\"bd38012\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"why_companies_sell_receivables\"><\/span>Why companies sell receivables?<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8d560a5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8d560a5\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-160ee5a\" data-id=\"160ee5a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-17aba11 elementor-widget elementor-widget-text-editor\" data-id=\"17aba11\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Companies choose to sell their receivables for several reasons. Here are some of the main ones.<\/p><ol><li><strong>Immediate cash flow:<\/strong> Businesses often face cash flow challenges, especially when dealing with low-paying customers\/clients. Selling receivables provides immediate access to funds, enabling them to meet payroll, purchase inventory and cover other operational expenses.<br \/><br \/><\/li><li><strong>Risk management:<\/strong> By selling receivables, businesses can transfer the risk of non-payment to the factoring company.<br \/><br \/><\/li><li><strong>Business growth:<\/strong> Businesses looking to grow or invest in new opportunities may not have the luxury of waiting 30, 60 or 90 days for invoice payments. Selling receivables for cash allows them to reinvest in the business more quickly which fuels their growth.<\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-4fd1064 elementor-hidden-mobile elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4fd1064\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-44f79d1\" data-id=\"44f79d1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-48c9ce8 elementor-widget elementor-widget-heading\" data-id=\"48c9ce8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<p class=\"elementor-heading-title elementor-size-default\">Compare Invoice Financing Quotes Today<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-49e88c8 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"49e88c8\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-size-md elementor-animation-grow\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get Free Quotes Today<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-04658fe elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"04658fe\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6ef6182\" data-id=\"6ef6182\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a000c2d elementor-widget elementor-widget-spacer\" data-id=\"a000c2d\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-column .elementor-spacer-inner{height:var(--spacer-size)}.e-con{--container-widget-width:100%}.e-con-inner>.elementor-widget-spacer,.e-con>.elementor-widget-spacer{width:var(--container-widget-width,var(--spacer-size));--align-self:var(--container-widget-align-self,initial);--flex-shrink:0}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container,.e-con>.elementor-widget-spacer>.elementor-widget-container{height:100%;width:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer{height:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner{height:var(--container-widget-height,var(--spacer-size))}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty,.e-con>.elementor-widget-spacer.elementor-widget-empty{position:relative;min-height:22px;min-width:22px}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon,.e-con>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon{position:absolute;top:0;bottom:0;left:0;right:0;margin:auto;padding:0;width:22px;height:22px}<\/style>\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2705f29 elementor-widget elementor-widget-heading\" data-id=\"2705f29\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Who is involved in factoring for staffing companies?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-11d20e8 elementor-widget elementor-widget-image\" data-id=\"11d20e8\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"640\" height=\"427\" src=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Parties-Involved-in-Staffing-Factoring.jpg\" class=\"attachment-large size-large wp-image-11670\" alt=\"Parties Involved in Staffing Factoring\" srcset=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Parties-Involved-in-Staffing-Factoring.jpg 640w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Parties-Involved-in-Staffing-Factoring-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-108d72c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"108d72c\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0f3ac97\" data-id=\"0f3ac97\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-50bb509 elementor-widget elementor-widget-text-editor\" data-id=\"50bb509\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In this process, several key parties are involved. Understanding the role of each party will also help you understand how<span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/invoice-finance\/accounts-receivable-factoring\/\"> invoice factoring<\/a><\/strong><\/span> works for a staffing company.<\/p><p><strong>1. The staffing company (client):<\/strong><\/p><p>The staffing company is the business that provides temporary or permanent staffing solutions to its customers (which are other businesses or companies). When the staffing company issues invoices to its clients for services rendered, it sells these to a factoring company to obtain immediate cash.<\/p><p><strong>2. The factoring company:<\/strong><\/p><p>The <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/invoice-finance\/what-is-a-factoring-company\/\">factoring company<\/a><\/strong><\/span> or factor purchases the unpaid invoices from the staffing company at a discount. It provides the staffing company with an advance, usually around 70-90% of the invoice value. The factoring company then collects the full payment from the staffing company\u2019s clients when the invoices become due. It provides the remaining balance to the staffing company minus a factoring fee.<\/p><p>The factoring company bears the risk of non-payment, depending on whether the factoring arrangement is <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/invoice-finance\/recourse-vs-non-recourse-factoring\/\">recourse or non-recourse.<\/a><\/strong><\/span><\/p><p><strong>3. The staffing company\u2019s clients:<\/strong><\/p><p>The clients of the staffing company, called debtors, are the businesses that receive staffing services. They\u2019re responsible for paying the invoices issued by the staffing company. After the invoices are sold to the factoring company, the clients will pay the factoring company directly, according to the original payment terms. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7e0a615 elementor-widget elementor-widget-video\" data-id=\"7e0a615\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/www.youtube.com\\\/watch?v=3ImzEZPObFY&quot;,&quot;end&quot;:&quot;63&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-widget-video .elementor-widget-container{overflow:hidden;transform:translateZ(0)}.elementor-widget-video .elementor-wrapper{aspect-ratio:var(--video-aspect-ratio)}.elementor-widget-video .elementor-wrapper iframe,.elementor-widget-video .elementor-wrapper 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class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1311b90 elementor-blockquote--skin-border elementor-blockquote--button-color-official elementor-widget elementor-widget-blockquote\" data-id=\"1311b90\" data-element_type=\"widget\" data-widget_type=\"blockquote.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor-pro - v3.25.0 - 03-11-2024 *\/\n@charset \"UTF-8\";.entry-content blockquote.elementor-blockquote:not(.alignright):not(.alignleft),.entry-summary blockquote.elementor-blockquote{margin-left:0;margin-right:0}.elementor-widget-blockquote blockquote{background:transparent;border:0;color:#3f444b;font-size:100%;font-style:normal;margin:0;outline:0;padding:0;quotes:none;vertical-align:baseline}.elementor-widget-blockquote blockquote 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.elementor-blockquote__tweet-button svg{fill:#fff;height:1em;width:1em}.elementor-blockquote--button-skin-bubble.elementor-blockquote--button-view-icon .elementor-blockquote__tweet-button,.elementor-blockquote--button-skin-classic.elementor-blockquote--button-view-icon .elementor-blockquote__tweet-button{height:2em;padding:0;width:2em}.elementor-blockquote--button-skin-bubble.elementor-blockquote--button-view-icon .elementor-blockquote__tweet-button i,.elementor-blockquote--button-skin-classic.elementor-blockquote--button-view-icon .elementor-blockquote__tweet-button i{left:50%;position:absolute;top:50%;transform:translate(-50%,-50%)}.elementor-blockquote--button-skin-bubble .elementor-blockquote__tweet-button:before{border:.5em solid transparent;border-inline-end-color:#1da1f2;content:\"\";left:-.8em;position:absolute;top:50%;transform:translateY(-50%) scaleY(.65);transition:.3s}.elementor-blockquote--button-skin-bubble.elementor-blockquote--align-left .elementor-blockquote__tweet-button:before{border-left-color:transparent;border-right-color:#1da1f2;left:-.8em;right:auto}.elementor-blockquote--button-skin-bubble.elementor-blockquote--align-left .elementor-blockquote__tweet-button:hover:before{border-right-color:#0967a0}.elementor-blockquote--button-skin-bubble.elementor-blockquote--align-right .elementor-blockquote__tweet-button:before{border-left-color:#1da1f2;border-right-color:transparent;left:auto;right:-.8em}.elementor-blockquote--button-skin-bubble.elementor-blockquote--align-right .elementor-blockquote__tweet-button:hover:before{border-left-color:#0967a0}.elementor-blockquote--skin-boxed .elementor-blockquote{background-color:#f9fafa;padding:30px}.elementor-blockquote--skin-border .elementor-blockquote{border-color:#f9fafa;border-inline-start-width:7px;border-style:solid;padding-inline-start:20px}.elementor-blockquote--skin-quotation .elementor-blockquote:before{color:#f9fafa;content:\"\u201c\";display:block;font-family:Times New Roman,Times,serif;font-size:100px;font-weight:900;height:.6em;line-height:1}.elementor-blockquote--skin-quotation .elementor-blockquote__content{margin-top:15px}.elementor-blockquote--align-left .elementor-blockquote__content{text-align:left}.elementor-blockquote--align-left .elementor-blockquote .e-q-footer{flex-direction:row}.elementor-blockquote--align-right .elementor-blockquote__content{text-align:right}.elementor-blockquote--align-right .elementor-blockquote .e-q-footer{flex-direction:row-reverse}.elementor-blockquote--align-center .elementor-blockquote{text-align:center}.elementor-blockquote--align-center .elementor-blockquote .e-q-footer,.elementor-blockquote--align-center .elementor-blockquote__author{display:block}.elementor-blockquote--align-center .elementor-blockquote__tweet-button{margin-left:auto;margin-right:auto}<\/style>\t\t<blockquote class=\"elementor-blockquote\">\n\t\t\t<p class=\"elementor-blockquote__content\">\n\t\t\t\tAccording to a report by Invoice Funding, business payment cycles have been shown to at around 45 days in 2022. \t\t\t<\/p>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-649ce07 elementor-widget elementor-widget-spacer\" data-id=\"649ce07\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-699821e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"699821e\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-617f2ed\" data-id=\"617f2ed\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-be0acb7 elementor-widget elementor-widget-heading\" data-id=\"be0acb7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Who is involved in factoring for staffing companies?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f018f41 elementor-widget elementor-widget-text-editor\" data-id=\"f018f41\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>To qualify for invoice factoring, a staffing agency must meet certain criteria. The company should have creditworthy clients with strong payment histories, as factoring companies assess the risk based on the clients\u2019 ability to pay.<\/p><p>Additionally, it should issue invoices for completed work or services, as factors typically do not advance funds to future or unfulfilled contacts. A clean financial record, without significant liens or legal disputes, also strengthens the company\u2019s qualification. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d67bc7b elementor-widget elementor-widget-heading\" data-id=\"d67bc7b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"why_staffing_companies_should_use_invoice_factoring\"><\/span>Why staffing companies should use invoice factoring?<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9676d02 elementor-widget elementor-widget-image\" data-id=\"9676d02\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"640\" height=\"427\" src=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Why-Staffing-Companies-Use-Invoice-Factoring.jpg\" class=\"attachment-large size-large wp-image-11671\" alt=\"\" srcset=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Why-Staffing-Companies-Use-Invoice-Factoring.jpg 640w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Why-Staffing-Companies-Use-Invoice-Factoring-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9896aa0 elementor-widget elementor-widget-text-editor\" data-id=\"9896aa0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Staffing companies in the UK face several challenges that often lead them to employ invoice factoring as a financial solution. One of the primary reasons is the cash flow gap created by the need to pay temporary staff on a weekly basis while waiting for 1-3 months for clients to settle invoices.<\/p><p>Another challenge is the unpredictable nature of client payment behaviour. Even with reliable clients, late payments are common, adding to the financial pressure. According to a report by Natwest Group, two million of Britain\u2019s small businesses fall prey to late payments of invoices between \u00a35000 &#8211; \u00a320,000.<\/p><p>Moreover, the competitive nature of the staffing industry necessitates constant expansion and scaling to remain competitive. This requires significant working capital, which is often tied up in unpaid invoices.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3912f1c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3912f1c\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-da29af3\" data-id=\"da29af3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0188d3c elementor-widget elementor-widget-heading\" data-id=\"0188d3c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"benefits_of_staffing_factoring\"><\/span>Benefits of staffing factoring<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3a2449c elementor-widget elementor-widget-text-editor\" data-id=\"3a2449c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Staffing agencies can reap numerous benefits from employing invoice factoring.<\/p><p><strong>1. Immediate cash flow:<\/strong><\/p><p>One of the most significant benefits of factoring is the immediate access to cash. Instead of waiting 1-3 months for client payments, staffing agencies can receive up to 90% of the invoice value within 24 to 48 hours. How convenient is that? This quick influx of cash ensures that payroll obligations and other operational expenses are met on time.<\/p><p><strong>2. Freedom from traditional loans:<\/strong><\/p><p>Unlike traditional loans, staffing agency factoring doesn\u2019t add debt to the company\u2019s balance sheet. This is because factoring involves <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/invoice-finance\/is-selling-accounts-receivable-right\/\">selling your receivables<\/a><\/strong><\/span>, not borrowing money. Also, the terms and conditions for invoice factoring are not as strict as those for loans e.g., the necessity of collateral and the presentation of several financial documents.<\/p><p><strong>3. Frees up time and resources:<\/strong><\/p><p>Since it\u2019s the factoring company that looks after getting payments from the clients of the staffing companies, the staffing company can be freed from the time and money spent on chasing payments.<\/p><p>They can focus on other parts of the business like marketing and customer service without taking on the stress of unpaid invoices.<\/p><p><strong>4. Helps to gain a competitive advantage:<\/strong><\/p><p>We discussed the competition as one of the challenges for staffing companies above. Well, with reliable cash flow and the ability to offer flexible payment terms to clients, staffing agencies can gain a competitive edge in the market.<\/p><p>Think about it. If they get the ability to pay staff on time and take on new contracts, wouldn\u2019t they crush their competition? That\u2019s what factoring enables.<\/p><p><strong>5. No long-term contracts:<\/strong><\/p><p>Most factoring arrangements are flexible and don\u2019t require long-term commitments. This allows staffing agencies to use factoring as needed, scaling up or down based on their current financial situation.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8af7044 elementor-widget elementor-widget-image\" data-id=\"8af7044\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1024\" height=\"514\" src=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Benefits-of-Staffing-Factoring-1024x514.png\" class=\"attachment-large size-large wp-image-11672\" alt=\"\" srcset=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Benefits-of-Staffing-Factoring-1024x514.png 1024w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Benefits-of-Staffing-Factoring-300x151.png 300w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Benefits-of-Staffing-Factoring-768x386.png 768w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Benefits-of-Staffing-Factoring-1536x772.png 1536w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Benefits-of-Staffing-Factoring-2048x1029.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bdb998a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bdb998a\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f3969b4\" data-id=\"f3969b4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bba8ab1 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"bba8ab1\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-size-md elementor-animation-grow\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get Invoice Finance Quotes<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3c3b938 elementor-widget elementor-widget-spacer\" data-id=\"3c3b938\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-73b2114 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"73b2114\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5625eb0\" data-id=\"5625eb0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-715c38a elementor-widget elementor-widget-heading\" data-id=\"715c38a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"invoice_factoring_vs_other_financing_options_for_staffing_companies\"><\/span>Invoice factoring vs other financing options for staffing companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9e75fe1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9e75fe1\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3aa7624\" data-id=\"3aa7624\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-15c4e96 elementor-widget elementor-widget-text-editor\" data-id=\"15c4e96\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Invoice factoring is not the only method of financing available for staffing companies. There are several others, but how do they compare with factoring? Let\u2019s have a brief look.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3d5933b elementor-widget elementor-widget-heading\" data-id=\"3d5933b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">1. Business loans<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9fbba68 elementor-widget elementor-widget-text-editor\" data-id=\"9fbba68\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Traditional business loans allow staffing agencies to borrow a lump sum from a bank, repaying it over time with interest. While this method provides access to significant capital, it comes with strict credit requirements, long approval processes and the burden of debt that keeps increasing with every passing year.<\/p><p>In contrast, invoice factoring offers quicker access to cash without adding debt to the balance sheet. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f6bfd37 elementor-widget elementor-widget-heading\" data-id=\"f6bfd37\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">2. Overdraft facilities<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aa65886 elementor-widget elementor-widget-text-editor\" data-id=\"aa65886\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>An overdraft facility allows companies to withdraw more money from their bank account than is available, up to an agreed amount. This can provide short-term relief for cash flow issues, however, overdrafts often come with a high interest rate and fees.<\/p><p>Compared to invoice factoring, which provides funding based on receivables, overdrafts are less predictable and can lead to significant costs if not managed carefully. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-522d748 elementor-widget elementor-widget-heading\" data-id=\"522d748\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">3. Asset-based lending<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ce71b80 elementor-widget elementor-widget-text-editor\" data-id=\"ce71b80\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Asset-based lending involves borrowing against the value of a company\u2019s assets, such as inventory or equipment. ABL can offer higher funding limits than invoice factoring, as it considers multiple asset types. However, it requires complex arrangements and ongoing asset valuations.<\/p><p>Invoice factoring is more straightforward, with funding directly tied to accounts receivable.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5ec0888 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5ec0888\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8e5a099\" data-id=\"8e5a099\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9035ea8 elementor-widget elementor-widget-heading\" data-id=\"9035ea8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"what_to_look_for_in_a_factoring_company_for_staffing_agencies\"><\/span>What to look for in a factoring company for staffing agencies?<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-597e39c elementor-widget elementor-widget-image\" data-id=\"597e39c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"485\" src=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Staffing-Agency-Facotring-Considerations.jpg\" class=\"attachment-large size-large wp-image-11673\" alt=\"Staffing Agency Factoring Considerations\" srcset=\"https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Staffing-Agency-Facotring-Considerations.jpg 640w, https:\/\/comparedbusiness.com\/uk\/wp-content\/uploads\/sites\/3\/2024\/09\/Staffing-Agency-Facotring-Considerations-300x227.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c66c905 elementor-widget elementor-widget-text-editor\" data-id=\"c66c905\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Let\u2019s be honest &#8211; not all factoring companies are equal. <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/invoice-finance\/top-invoice-factoring-companies\/\">Some are great<\/a> <\/strong><\/span>while others will stress you out even more. Here are a few considerations for choosing a good factoring company:<\/p><ol><li><strong>Industry experience:<\/strong> Choose a factor with proven experience in the staffing industry, An understanding of unique challenges and cash flow cycles in staffing is essential in order to provide effective services.<br \/><br \/><\/li><li><strong>Advance rates:<\/strong> Analyse the advance rates offered by different factoring companies. Higher advance rates do mean more cash, but make sure to balance this with other terms. For example, if a factor advances 90% but charges 6% free, it\u2019s worse than a factor advancing 75% and charging 3% fee.<br \/><br \/><\/li><li><strong>Contract terms:<\/strong> Review the length and flexibility of the contract. Some companies offer long-term contracts while others have flexible ones. Choose the one that sits well with your business needs.<br \/><br \/><\/li><li><strong>Customer support:<\/strong> Reliable and responsive customer support is crucial. Ensure the factoring company provides excellent service, as you may need assistance with various aspects.<br \/><br \/><\/li><li><strong>Technological advancement:<\/strong> Look for a factor that offers modern technology solutions such as online account management. This improves the efficiency of the process.<\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d79f1ac elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d79f1ac\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-915c2c6\" data-id=\"915c2c6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5773642 elementor-widget elementor-widget-heading\" data-id=\"5773642\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"staffing_factoring_costs\"><\/span>Staffing factoring costs <span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8b69cc9 elementor-widget elementor-widget-text-editor\" data-id=\"8b69cc9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>When staffing companies opt for invoice factoring, it\u2019s important to understand the <span style=\"text-decoration: underline\"><strong><a href=\"https:\/\/comparedbusiness.com\/uk\/blog\/invoice-finance\/invoice-factoring-rates\/\">costs of factoring<\/a><\/strong><\/span> to ensure the service aligns with their financial needs. Generally, they can be divided into 2 parts.<\/p><ul><li><strong>Factoring fee:<\/strong> The factoring fee typically ranges between 1% and 5% of the invoice value. This fee depends on several factors, including the creditworthiness of the company\u2019s clients, the total volume of invoices being factored and the time it takes for clients to pay the invoices, etc.<br \/><br \/><\/li><li><strong>Additional fees:<\/strong> Some factoring companies may also charge for additional services such as setup fees and monthly minimum fees. Thus, it\u2019s crucial for you to review the staffing factoring contract carefully and understand all potential costs involved.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9421c4a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9421c4a\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3c7c848\" data-id=\"3c7c848\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-47c69dd elementor-widget elementor-widget-heading\" data-id=\"47c69dd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"get_linked_to_top_staffing_factoring_options_in_the_uk_with_comparedbusiness\"><\/span>Get linked to top staffing factoring options in the UK with ComparedBusiness<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0141b68 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0141b68\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0f4a189\" data-id=\"0f4a189\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c70d9b9 elementor-widget elementor-widget-text-editor\" data-id=\"c70d9b9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>ComparedBusiness links you with top factoring companies that provide staffing factoring services in the UK. Just submit your requirements in less than 2 minutes and we will match you with them. You can choose the best option depending on your business needs.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dcb428a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dcb428a\" data-element_type=\"section\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a0fa2f1\" data-id=\"a0fa2f1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4a06ae0 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"4a06ae0\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-size-md elementor-animation-grow\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get Invoice Finance Quotes<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4440e7c elementor-widget elementor-widget-spacer\" data-id=\"4440e7c\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7bd03d90 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7bd03d90\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5cc40cba\" data-id=\"5cc40cba\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4c434eca elementor-widget elementor-widget-accordion\" data-id=\"4c434eca\" data-element_type=\"widget\" data-widget_type=\"accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-accordion{text-align:start}.elementor-accordion .elementor-accordion-item{border:1px solid #d5d8dc}.elementor-accordion .elementor-accordion-item+.elementor-accordion-item{border-top:none}.elementor-accordion .elementor-tab-title{margin:0;padding:15px 20px;font-weight:700;line-height:1;cursor:pointer;outline:none}.elementor-accordion .elementor-tab-title .elementor-accordion-icon{display:inline-block;width:1.5em}.elementor-accordion .elementor-tab-title .elementor-accordion-icon svg{width:1em;height:1em}.elementor-accordion .elementor-tab-title .elementor-accordion-icon.elementor-accordion-icon-right{float:right;text-align:right}.elementor-accordion .elementor-tab-title .elementor-accordion-icon.elementor-accordion-icon-left{float:left;text-align:left}.elementor-accordion .elementor-tab-title .elementor-accordion-icon .elementor-accordion-icon-closed{display:block}.elementor-accordion .elementor-tab-title .elementor-accordion-icon .elementor-accordion-icon-opened,.elementor-accordion .elementor-tab-title.elementor-active .elementor-accordion-icon-closed{display:none}.elementor-accordion .elementor-tab-title.elementor-active .elementor-accordion-icon-opened{display:block}.elementor-accordion .elementor-tab-content{display:none;padding:15px 20px;border-top:1px solid #d5d8dc}@media (max-width:767px){.elementor-accordion .elementor-tab-title{padding:12px 15px}.elementor-accordion .elementor-tab-title .elementor-accordion-icon{width:1.2em}.elementor-accordion .elementor-tab-content{padding:7px 15px}}.e-con-inner>.elementor-widget-accordion,.e-con>.elementor-widget-accordion{width:var(--container-widget-width);--flex-grow:var(--container-widget-flex-grow)}<\/style>\t\t<div class=\"elementor-accordion\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1271\" class=\"elementor-tab-title\" data-tab=\"1\" role=\"button\" aria-controls=\"elementor-tab-content-1271\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-chevron-right\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">What is factoring in staffing?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1271\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"1\" role=\"region\" aria-labelledby=\"elementor-tab-title-1271\"><p>Factoring in staffing involves selling unpaid invoices to a factoring company in exchange for immediate cash. This helps staffing agencies maintain steady cash flow, pay employees and cover operational expenses but it comes at the cost of a factor fee.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1272\" class=\"elementor-tab-title\" data-tab=\"2\" role=\"button\" aria-controls=\"elementor-tab-content-1272\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-chevron-right\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">What is the average cost of factoring invoices?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1272\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"2\" role=\"region\" aria-labelledby=\"elementor-tab-title-1272\"><p>The average cost of factoring invoices typically ranges from 1% to 5% of the invoice value. The exact rate depends on factors such as the industry, the creditworthiness of your customers and the volumes of invoices.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1273\" class=\"elementor-tab-title\" data-tab=\"3\" role=\"button\" aria-controls=\"elementor-tab-content-1273\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-chevron-right\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">How fast do factoring companies pay?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1273\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"3\" role=\"region\" aria-labelledby=\"elementor-tab-title-1273\"><p>Factoring companies typically pay within 24 to 48 hours after receiving and approving the invoices. Some companies may also offer same-day funding, depending on the agreement.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is factoring in staffing?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p>Factoring in staffing involves selling unpaid invoices to a factoring company in exchange for immediate cash. This helps staffing agencies maintain steady cash flow, pay employees and cover operational expenses but it comes at the cost of a factor fee.<\\\/p>\"}},{\"@type\":\"Question\",\"name\":\"What is the average cost of factoring invoices?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p>The average cost of factoring invoices typically ranges from 1% to 5% of the invoice value. The exact rate depends on factors such as the industry, the creditworthiness of your customers and the volumes of invoices.<\\\/p>\"}},{\"@type\":\"Question\",\"name\":\"How fast do factoring companies pay?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p>Factoring companies typically pay within 24 to 48 hours after receiving and approving the invoices. Some companies may also offer same-day funding, depending on the agreement.<\\\/p>\"}}]}<\/script>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What is invoice factoring for staffing companies? Invoice factoring for staffing companies is a financial solution that helps bridge the gap between invoicing clients and receiving payment. In the staffing industry, where payroll obligations are consistent and clients often pay on extended terms, cash flow can become strained. Invoice factoring allows staffing companies to sell &#8230; <a title=\"Invoice Factoring for Staffing Companies: A Detailed 2024 Guide\" class=\"read-more\" href=\"https:\/\/comparedbusiness.com\/uk\/blog\/invoice-finance\/invoice-factoring-for-staffing-companies\/\">Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":11676,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[20],"tags":[],"class_list":["post-11668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-invoice-finance"],"_links":{"self":[{"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/posts\/11668"}],"collection":[{"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/comments?post=11668"}],"version-history":[{"count":7,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/posts\/11668\/revisions"}],"predecessor-version":[{"id":11712,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/posts\/11668\/revisions\/11712"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/media\/11676"}],"wp:attachment":[{"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/media?parent=11668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/categories?post=11668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/comparedbusiness.com\/uk\/wp-json\/wp\/v2\/tags?post=11668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}