Staffing Companies: Work with the Right LenderPosted by Factor Funding Co. on May 31, 2013
Operating an employment staffing business can be very lucrative, especially in tough economic times. As available jobs become scarce, more and more individuals sign up with staffing services, offering businesses a greater pool of experienced workers from which to choose. However, one of the most important relationships you need to develop in the staffing industry doesn't involve your clients or your workers at all. It's the relationship you establish with your lender. Since the operation of a staffing service relies heavily on cash flow, it's important to learn how to build a lending relationship in the staffing industry.
Choose a Lender with Experience
First, make sure that you select a lender that has a wealth of experience, not just in lending to companies, but in lending to staffing companies. Lenders who have worked with staffing agencies in the past are familiar with the kinds of circumstances that may lead to a sudden need for increased capital. They can also offer you advice on how to make smart use of your working capital so that you can avoid facing an unexpected cash crunch.
Make Personal Contact a Priority
Since the nature of the staffing industry often requires ongoing credit, you'll want to develop a lending relationship that can continue for years into the future. This means that you should choose a lender that contacts you personally whenever you need assistance and is willing to speak frankly to you about your credit needs and conditions. If you find that the individual you are initially assigned to is less than personable, speak with his or her supervisor and ask if you can work with a more friendly contact. If the lender is unwilling to accommodate you on this, it's time to find another lending institution.
Find Out if the Lender Can Adapt to Your Business Needs
When you and your staffing agency are just starting out, you may not need a high credit line. But as your business grows, you will need more credit to keep the doors open. You may be ready to expand into another location, hire more employees, or pursue a top industry client. Your lender should have the resources to supply you with increased funding as these situations arise.
Succeeding in the staffing industry takes patience, persistence, and a willingness to adapt to the changing market. If you choose a lending institution whose employees demonstrate these same qualities, you'll be on your way to building a lasting relationship with your lender.