Invoice factoring gets staffing agencies cash faster.
Do you need help making payroll? Do you have slow paying customers?
For more than 25 years, Catalyst has provided financing options to staffing agencies.
We understand that in the staffing industry, having a consistent cash flow is extremely important in order to meet weekly payroll. Long payment times and slow-paying customers can leave you without enough cash in hand to make these payments.
Catalyst Financial can help you get cash as soon as your invoice is generated.
This type of financing, known as invoice purchasing, factoring, or accounts receivable financing, is what we specialize in at Catalyst. We can help you significantly improve cash flow at reasonable and competitive rates.
We have helped countless staffing agencies manage their cash flow in order to hire more employees and help fund payroll. In most cases, staffing companies are prequalified to factor with us because of the transactional nature of the business; invoices are provided for each employee and show proof of payment.
Why factor with Catalyst:
Our team provides a level of service and personalized attention uncommon in our industry. You'll have a direct contact who manages your account and provides assistance with credit decisions.
- Highly competitive rates
- No long-term contracts
- No maintenance fees
- Online reporting
- Rebates paid weekly
- Advance rates up to 90%
- Daily reporting of receipts
- Recourse and non-recourse programs
Your financial interests are our top priority.
No long term contracts means that as soon as your business is ready, we help you transition to a traditional bank line of credit. Many of our customers actually come to Catalyst because their banker refers them and trusts us to provide the best service. Our average customer works with us for 18-24 months before qualifying for a line of credit.
How Catalyst helped a security staffing firm save big by switching to the right type of funding.
Challenge: Because of how quickly the staffing company was growing, their financials were not in line with what it took to secure a conventional loan. Whenever a debtor was late paying an invoice, it put the security staffing company in a situation where they couldn’t make payroll, which made them turn to high interest MCA loans. They did not know about factoring as a type of funding.
Funded: Their banker saw the debt the staffing company was in and referred them to Catalyst. Instead of using an MCA loan, it was a much better fit to use invoice financing to meet any shortfall in cashflow. The savings to the company using factoring instead of MCA loans was more than $100,000.
Multiple MCA loans totaling $410,000 to be repaid over 9 months
$140,000+ in fees
Factoring Cost for $410,000 over 9 months
$36,900 in fees
Savings of $100,000+ to client