BusinessCash is funding during the COVID-19 crisis.
Factoring for Technology Companies

Factoring for Technology Companies

Technology IT companies are experiencing a long period of growth and often use temporary staffing companies to fulfill their needs.   Over the last 14 years, IT employment has increased by more than 41%, compared to just 3.3% of total employment.

Many expect IT temporary staffing to grow another 7% in 2015 and reach $27.8 billion- big business for tech companies. It also means they need to be ready with the proper working capital to take advantage of continuous growth.

Big staffing companies clients often take 30-60 days to pay invoices. The delay in payment puts pressure on staffing companies cash flow, capital for payroll, and limiting growth opportunities overall.

Accounts receivable financing with credit protection is an adequate funding method for IT staffing companies to boost their working capital.  The staffing company simple sells its outstanding invoices to a factoring company.  The factor advances up to 92% of the invoice amount, collects the outstanding invoice amount from the staffing companies client(s) and upon payment provides the IT staffing agency with the balance minus a small fee.

Accounts receivable financing is excellent for companies that have tax liens and client concentration. As well as for personal credit issues, start-up, and other challenging funding situations. The reason is the factoring company focuses on the credit of the staffing companies client.  If the staffing company works with solid clients, they are in an excellent position to take advantage of factoring.

Get an IT Company Funding through Receivable Financing with Credit protection and AR management today! Call (888) 400-5930 or use the fast, safe & secure online funding application.

Back to Top