In order to qualify, your staffing agency should be in business for at least six months and you, as the business owner, should have a credit score of at least 500.
However, like an unsecured business loan, there is no collateral necessary to receive this type of funding, making it easier to qualify than other options.
Even if you can qualify for a small business loan, there is no guarantee that you will be approved for the amount of cash you need to operate comfortably.
If you’re able to be approved, this is a lower-cost option than unsecured financing sources.
Factoring fees are low and designed to be competitive, and staffing factoring companies have the expertise to navigate the industry with ease.
To qualify for staffing factoring, you must invoice other businesses.
If you’re starting a new staffing agency, you know there’s not much time to relax.
Figuring out financing is one of the first tasks to check off your to-do list.
Some of which may involve a pledge of collateral – which a startup staffing agency may not be able to provide.
Although the past few years have brought on more relaxed criteria, it is still incredibly difficult for a business without any credit or with less than perfect credit to qualify without the collateral.