“I just want to get paid already!”
IT / Staffing businesses commonly have to wait 30-60 days to get paid by their clients. Therefore, our research has found that many IT & Staffing companies prefer to sell their invoices to a financing company and receive the cash today. Of course this method, otherwise known as invoice factoring comes with a cost; Businesses that opt into this type of financing can expect to receive 85% of the invoice value today and the remaining 15% minus fee’s when the invoices are paid in full to the financing company.
Invoice Factoring can be a very good solution for an IT & Staffing business that is looking to grow. However, it’s very important to be working with the right factoring company and understanding the fee structure.