The editors of Recruiting & Staffing Solutions Magazine assembled a prestigious round table of funding and lending experts and asked them a series of questions concerning the recession and how it has affected their clients. The responses to the survey was included in a special feature in the March/April issue of RSSM. PRN Funding’s CEO, Phil Cohen, was one of the factoring experts who participated in the survey.
A summary of the questions asked and Mr. Cohen’s responses are included below:
In your opinion, what is the biggest impact on the staffing industry by the present credit crunch?
Credit worthy staffing agencies are finding it increasingly difficult to either receive or renew working capital lines from banks. In addition, alternative financing vehicles traditionally utilized by smaller firms, such as home equity lines and credit cards, are also becoming more difficult to obtain. Reduced access to capital is compounded by an industry wide slow down in the payment of invoices by customers.
What do you believe will be the biggest opportunity staffing firms will have because of the present recession?
I believe the biggest opportunity staffing firms have right now is to help fill in the gaps for employers who have had to lay-off full-time employees. Staffing firms can use this recession to provide temporary workers to companies who don’t necessarily have the financial resources available to perform the necessary background checks or offer benefits packages. By utilizing staffing firms, these companies can maintain a business-as-usual atmosphere on a more affordable level.
If a staffing firm wanted to research funding and lending companies, what are the two biggest factors that separate your company from others in the industry?
- Medical Staffing Industry Expertise – PRN Funding, LLC understands the unique characteristics of the medical staffing industry. PRN Funding is very familiar with traditional payment terms, industry jargon and day-to-day procedures associated with the medical staffing industry.
- Extremely Flexible Factoring Terms – PRN Funding offers the utmost in flexibility to medical staffing companies. Our clients choose when, who, how much and how long to factor their invoices.
Which industries have been influenced the most by the downturn?
As a very focused factor, we are only qualified to comment on the medical staffing industry. Unlike other downturns, even the medical staffing industry has been affected as facilities have had significantly less difficulty filling open shifts.
In your opinion, which industries have been the least affected by the current economic situation?
Once again, I am only qualified to comment on the medial staffing industry. While virtually all segments have been affected, those agencies providing home health care services have been less affected than other specialties as demand for their services is less discretionary and their clients (governmental institutions) don’t have any staff of their own.
