Staffing Agencies Name Cash Flow No. 1 Challenge

About two years ago, The Receivables Exchange marketplace opened its doors. It’s a unique factoring service that allows factors to bid on various business owners’ invoices.

The Receivables Exchange recently conducted a survey of 636 executives at companies from the $1-200 million revenue range across 15 different industries. The results of the survey yielded some interesting insights into the cash flow worries at temporary staffing firms:

  1. 2/3 of the executives surveyed listed working capital as their #1 concern, and staffing agency owners were the most worried about cash flow.
  2. Staffing agency owners also listed seasonality and disruptive events (i.e. fluctuations in the market that affect demand for services) as top concerns.
  3. Although extended payment terms were not as big of a capital challenge for staffing agency owners as in other industries, staffing executives still listed it as a general business concern.
  4. 1/3 of all the respondents believed that they were being blocked by traditional financing sources.
  5. Nearly half of the staffing companies were not satisfied with their borrowing capabilities from traditional financing sources.

Given all of these findings, it comes to no surprise that staffing agency owners would benefit greatly by selling their invoices to a factoring firm. Click here to access the complete research report: http://www.receivablesxchange.com/recruiting-staffing.

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