Temporary Employment Firm Finds Comfort in Non-Recourse Factoring

calculator-1232804_640You do not need to be in business for long in order to pick up some bad debt. No matter how well you think you screen your customers, it is inevitable to find companies that even though you delivered an acceptable product or service to them, they either can not or will not pay your invoice to them.

It was a combination of these problems that a Nevada USA Temporary Employment Agency found itself in. They had a few accounts that had been hit by the recession and filed for bankruptcy protection and a couple others that just decided that they were not going to pay. All invoices were supported by the proper sign offs so the customers had no grounds for non-performance or non-delivery of services but the Placement Agency was still sitting there with bad paper.

It was after this happened 3 times that the owner of the Placement Agency decided to look into options to stop this problem from really getting out of hand. They had already depleted their cash reserves and they could not withstand another customer not paying their Invoices or they would be looking into bankruptcy protection themselves.

The part of the solution to the problem was for the company to look at Insuring its Receivables. But what about the Cash Flow problem?

The owner of the Employment Agency decided to look for options using a Commercial Finance Broker because they had the best options available on the market plus it would not cost him anything for the service because the Business Finance Broker is paid by the lender.

The Broker was able to liquidate their current bad debt, put them into a Commercial Factoring program which was insured so that they now had a Non-Recourse Invoice Factoring and the advance they took on their Accounts Receivable would never come back against them.