One of the fastest growing industries in the USA is labor outsourcing in the staffing industry. Staffing companies provide skilled and unskilled labor to companies that would rather outsource all the employee expenses and issues. Often staffing firms become strapped for cash as they need make payroll weekly and the client does not pay them for the service for 30 to 45 days. Payroll financing and payroll factoring can provide a solution for this cash flow gap by allowing the staffing agency to have access to the billed time card revenue immediately upon being confirmed by the client, usually via a time sheet or hours worked spreadsheet. Another staffing financing issue is that staffing companies typically have limited collateral to provide a traditional lender due to the nature of the business. Banks often cannot provide any credit facility until several years of profitability has occurred. Most of the payroll financing and payroll factoring for staffing company products do not require additional collateral other than the accounts receivable of the staffing company. This allows the staffing agency to utilize the credit power of the customers that they work with. As long as the staffing firms clients have reasonable credit payroll financing or payroll factoring can usually be approved. Once payroll financing is in place the staffing agency is not limited by cash flow. As long as they seek out customers with good credit the funding is available. This opens many doors for growth as sales will only be limited by sales ability and not because the staffing agency cannot meet the payroll obligations. In most cases the staffing agency is only giving up 1% to 3% of the amount the bill the client to have the funds available for payroll immediately. Most labor staffing companies find this a very reasonable business expense to be in a position to grow the business and take on additional customers. If your in the staffing industry and struggling with payroll expense and cash flow you should consider giving payroll financing or payroll factoring a look. Most likely some of your competitors are already using this tool so it could also help you even up the playing field. About the Author: