There are many reasons why businesses choose factoring to assist operations and retain growth. The following slideshow points out three industries that use invoice factoring (e.g. Staffing, Freight, Oil & Gas) to cover rapid growth costs, cash flow gaps, and other costs.
1. Staffing, Freight and Oil & Gas: 3 Industries that Use Invoice Factoring — Here are three industries that routinely use invoice factoring to maintain growth.
2. Staffing Factoring: Though the staffing industry may be flourishing, steady cash flow can be an issue.
3. Get Costs Covered with Staffing Factoring — Providing cash for sourcing, recruiting, and hiring employees remains a challenge for temporary and permanent staffing agencies. Biweekly payroll checks are expensive and problematic because staffing agencies are expected to pay their employees on a two- week cycle.
4. Staffing Factoring Provides Steady Cash Flow: Staffing financing moves quickly and can keep up with the fast pace of temporary staffing agencies. With factoring, staffing agencies can get up to 95 percent of the value of their invoices (in 24 hours).
5. Freight Factoring — Freight factoring provides steady cash flow to cover the numerous costs related to the transportation industry.
6. Transportation Companies Rely on Fast-Moving Freight Financing: Trucking is a slim margin industry filled with high operational costs such as fuel, payroll, fleet maintenance and overhead. Cash flow can be problematic as shippers demand immediate payment.
7. Affordable and Accessible Freight Factoring: Freight factoring companies work with all businesses, including startups with one truck to major regional companies with hundreds of vehicles. Factoring companies purchase invoices and provide cash to keep trucks on the road.
8. Oil & Gas Factoring: Oil & gas factoring is an integral part of the oil & gas industry.
9. Oil & Gas Loans from Banks — Banks prefer to lend to industries with steady, predictable, year-after-year growth. Because oil and gas companies tend to move quickly to seize on an opportunity, they do not have time to sit and wait for a short-term loan from a bank.
10. Oil & Gas Funding: Factoring companies provide oil and gas funding for shale oil (fracking) projects as well as more traditional drilling. Companies can get cash (in 24 hours) by selling their existing receivables for 95 percent of their value.
11. Is Invoice Factoring Right for You? Invoice factoring can work with just about any industry, including manufacturing, government contracting, wholesaling, telecom and much more. To see if factoring receivables is right for your industry, contact: Business Factors at 888-234-6663 — An invoice factoring professional can explain how factoring receivables can help your industry. They can answer all your questions about the costs of factoring, as well as how fast you can get your money. Contact us today!