Staffing Business Loans

Staffing Business Loans Can Help Your Business Grow

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How a Staffing Business Loan Can Help Your Business

Staffing businesses capitalize on the current trends in the business world. In today’s market, many businesses favor outsourcing employees rather than hiring themselves, which makes the staffing business industry highly profitable.

But, like any other industry, starting and operating a staffing business takes a lot of time – and a lot of money. You must have a sufficient amount of working capital, which can be a problem for many business owners.

The only way to expand your business is to have cash on hand to pay for the expenses. Obviously, the bigger your contracts or the bigger your jobs, the bigger cash reserve you’ll need.

For staffing agencies, one of the biggest expenses is often payroll. Employees need to be paid regularly, and on time – there is no alternative. If not, they will find somewhere else to work.

Without enough working capital, you can’t run your business effectively. If your business isn’t running effectively, you can’t take on new clients. Without new clients, your business will suffer.

At SMB Compass, we understand the challenges of running a staffing business. That is why we’re committed to working with you to make sure you have the funds you need. We will take the time to find you a financing plan that satisfies all of your needs.

Best Ways to Use a Staffing Business Loan

Running a business is hard. But with a reputable funding partner, that believes in your potential, you will have a shot at success. Just like any other business, staffing companies can often use the help of extra working capital for business operations.

Here are some of the ways you can use the funds from a staffing business loan:

Plan Ahead

Your initial business plan might not always work later down the road. Because market conditions are always evolving, a successful business owner must review and update their business plans regularly. An improved business needs improved strategies. A staffing business loan can help you plan for future expansion.

Aquire New Tools and Technology

Having the right tools and technology is essential to help staffing companies streamline communications, generate job candidates and clients, and improve overall productivity. Paper resumes are a thing of the past! Successful staffing companies use customer relationship management (CRM) systems.

CRM systems are proven to help improve communication between clients and candidates, which strengthens business relationships and ultimately, increases sales. A staffing business loan can help you obtain the tools and technology you need to succeed.

Manage Cashflow and Payrole

Every business owner knows about cash flow issues. Despite problems in cash flow, you always are going to have to pay your employees. The right funding partner will help you through all of your cash flow difficulties, so you can always be ready to take advantage of growth opportunities that might come your way.

Adapt to Change

It is easy to be content and resist change by ignoring new trends. Constantly updating your equipment or changing your operating procedures can be costly. But, being content can threaten the growth and success of your business.

It never hurts to revisit your business plan. By assessing current market conditions, you can update your strategies to adapt to current trends and environments. Should you renegotiate your contracts? Update technology? Expand your team? Or maybe improve your marketing and advertising efforts? All of these changes require working capital – a staffing business loan can cover those costs.

How Long Does Staffing Business Financing Take?

SMB Compass offers quick approval for your staffing business loan. Our company has provided more than $160,000,000 to small businesses all over the country. Our expert account executives will work with you to make sure we find a financing plan that fits all of your needs.

We offer fast and flexible funding. In four easy steps, your business will receive the funding you need:

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Apply for a staffing business loan online

Our simple online application lets you fill out and submit your request for funding. The process is pretty simple, but if you need help along the way, you can contact us via phone, chat, or email.

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A friendly 5 to 10-minute introduction

The next step is an introductory conversation with one of our account executives. We will go over your needs and begin to discuss the different options available.

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Documentation and underwriting

Once you make a decision and reach an agreement, we’ll provide closing documents to review the terms. We’ll also answer any final questions you might have.

Approval and funding in less than 24 hours

When your loan has been approved, we immediately send the funds to your business bank account within 24 hours.

Best Types of Loan Programs for Staffing Business Loans

SMB Compass offers different types of financing options for your staffing business needs. To ensure that your business gets nothing but the best, our trusted financial advisors will help you find the right loan, based on your business’ specific needs and goals.

Here are the most common types of financing options for staffing businesses:

SBA 7(a) Loans

The Small Business Administration (SBA) designed the SBA loan program to incentivize lenders to fund small businesses. SBA loans are usually two or five year terms. The SBA guarantees about 85% of each SBA loan to the lenders, which means your business has a good chance of being approved.

Business Line of Credit

A business line of credit is similar to a credit card. The lenders set credit limits and interest rates, and your business can withdraw money from the line of credit whenever you need it. The line of credit is revolving, so once you pay toward your amount owed, your amount available goes back up.

Merchant Cash Advance

A merchant cash advance is a good option if your staffing business needs working capital ASAP, or if you don’t have good credit. Technically, a merchant cash advance is not a loan; as the name suggests, it’s more of a cash advance.

With a merchant cash advance, lenders provide you with the funds you need in exchange for a percentage of your daily credit/debit card transactions. While a merchant cash advance isn’t a loan, it still offers similar benefits. It also has a higher approval rate than other traditional loan programs.

Invoice Factoring

Invoice factoring refers to the process of selling accounts receivables, or invoices, to a third party. The third party is a factoring company, or a private lender, who will pay you immediate cash for your invoices, for a fee. After you sell the invoice, your clients pay their remaining balance to the factoring company.

Best Types of Loan Programs for Hotel Business Loans

SMB Compass offers different types of financing options for your hotel business needs. We have financial experts on hand, ready to help answer any question to make sure you find a loan product that fits your needs.

Here are the most common types of financing products for hotels:

SBA 7(a) Loans

The Small Business Administration (SBA) gives incentive for lenders to offer loans to small businesses by guaranteeing a percentage of the funds immediately. This makes SBA loans ideal for small businesses.

The SBA 7(a) loan is also ideal for hotel financing because it has low-interest rates, long repayment terms (10 to 25 years), and you can borrow up to $5,000,000. The SBA 7(a) loan is flexible, and you can use it to fund any hotel financing need, such as purchasing commercial real estate, construction, renovations, equipment purchasing, additional working capital, and more.

Asset-Based Loans

If your business doesn’t have enough revenue or cash flow to qualify for other forms of business financing, you might want to look into asset-based loans. Asset-based loans are ideal for businesses with a high value in assets or on their balance sheets.

Businesses can use their assets as collateral to secure financing. Most lenders consider the following as collateral for an asset-based loan:

  • Accounts Receivable
  • Inventory
  • Equipment
  • Intellectual Property
  • Real Estate
  • Marketable Securities

Merchant Cash Advance

A merchant cash advance is a good option if your hotel business needs working capital ASAP, or if you don’t have good credit. Technically, a merchant cash advance is not a loan; as the name suggests, it’s more of a cash advance.

With a merchant cash advance, lenders provide you with the funds you need in exchange for a percentage of your daily credit/debit card transactions. While a merchant cash advance isn’t a loan, it still offers similar benefits. It also has a higher approval rate than other traditional loan programs.

Equipment Financing

Buying new equipment for your hotel is expensive. Equipment financing provides you with the money you need to purchase new beds, washers and dryers, vehicles, or any other equipment your hotel needs. Typically there are two equipment financing options: equipment leasing and equipment loans.