One of the most difficult things for a manufacturing company to manage is its business cycle. Even though there is plenty of trending information that can be used to help develop the proper steps to take during peak periods, there can be inconsistencies which make these plans difficult to sustain. The key to managing a business cycle is to have a resource that allows your company to meet the production needs created by client demand. As long as you can handle demand, then you are able to fill orders and sustain your revenue. It is all about planning and utilizing resources at your disposal.
Most manufacturing organizations require a versatile staff to be able to react to the needs of a variety of clients. There is still a great deal of manufacturing that goes on in the United States, and each manufacturing company requires a staff of highly trained employees to be able to execute client specifications precisely. There are several reasons why production employees are so valuable to a manufacturing firm, and these are the same reasons why temporary production staffing companies need to work hard to gain the trust of their clients and retain repeat business. Once a temp production staffing company has shown that it can be a reliable supplier of personnel, then it will have no problem finding manufacturing clients to help its business grow.
A manufacturing company spends a great deal of money training its production employees to utilize methods that keep costs down. When a manufacturing company turns to a temporary production staffing organization for help during peak times of the year, that manufacturing company does not want to sacrifice those cost-saving methods just to bring on enough employees to maintain production. It is imperative that temporary production employees understand each company’s manufacturing methods and know how to follow production guidelines closely.
Adherence to strict methods requires disciplined employees. This is why temporary production staffing companies spend a lot of time and money on recruiting the right kinds of personnel. The temp company has its own reputation to think of and the needs of its clients to keep in mind whenever it hires a new employee. These recruiting methods are expensive and require ongoing funding. Without these kinds of very precise recruiting methods, the more reputable temporary production staffing companies would not be able to keep their manufacturing clients happy.
The Internet has changed how temporary staffing companies can maintain their work forces. A production work force has to be trained and updated on all of the company’s production methods and needs. In order to save money, a manufacturing firm utilizes very measured methods for creating product and for utilizing its resources. The purchasing programs a manufacturer uses are tied into its production schedule to reduce the possibility that an excess of materials, that may never be used, would be purchased. It is all part of saving the company money.
A temporary production staffing company that wants to retain its repeat clients will use the Internet to keep personnel updated on any changes that each manufacturing customer has made to their methods. This allows the temporary staff to go into a work situation already knowing how the manufacturing firm utilizes its personnel, machines and materials. When a temp staffing agency works hard to keep its personnel prepared in this manner, then it is able to retain its larger repeat clients. But keeping that many temporary employees updated on those kinds of changes, even over the Internet, costs money and it adds to the ongoing expenses of the temp staffing firm.
Any staffing company relies on its clients for its survival, but temporary production staffing firms have special financial issues that few other companies have to worry about. A manufacturing firm has a wide array of vendors that it utilizes to produce products that keep it open for business. Some manufacturing companies pay their bills on time, while others tend to let their bills go 30 or more days late. Despite paying their bills late, these manufacturing companies still require their temporary staff to be on hand when needed and ready to go.
A temporary production staffing company must be able to sustain its cash flow so that it can meet its list of payroll obligations and keep its staff on the job for its manufacturing clients. The recruiting and training processes are also ongoing and require regular financing. Under normal circumstances, the temp staffing agency would utilize its cash flow to keep its employees informed and working. But when past due invoices start to clog up the temp firm’s aging reports, then that is when problems start to arise. Temporary production staffing companies need funds, and factoring receivables is the answer.
The problem that temporary production staffing companies face is providing their manufacturing clients with qualified personnel to meet the needs during peak production periods. The issue is compounded by the cash flow issues that come with past due invoices thanks to late payments by those very same manufacturing clients. To relieve the potential for an adversarial relationship with its own clients, the temp staffing firm needs to find a cash flow answer that will create a stable financial foundation.
Receivables are the invoices that your staffing company issues to manufacturing clients, and factoring receivables is the process of using those invoices as collateral towards cash advances. Commerce Commercial Credit is a world leader in factoring receivables for small to medium sized businesses. We have a comprehensive understanding of the temporary production staffing industry and that is how we are able to utilize our flexible and custom financing programs to your advantage. We will advance you the full face value of your outstanding invoices, minus our lending fee, to help you get the cash flow you need to meet client expectations.
Commerce Commercial Credit works with you to develop your account in three to five business days. Once your temp staffing business is approved, we will work with you to approve your invoices to creditworthy clients and use them as collateral to advance you cash. You can use this cash to meet your payroll obligations, pay for your online training needs and fund your ongoing recruiting methods. Instead of taking on extra debt with a bank loan or bank line of credit, you can fund your own operations with your invoiced sales.
Let Commerce Commercial Credit turn your past due invoices into instant cash. We will use our receivables factoring methods to provide you with the funds you need to run your business. You will be able to sustain your current operations, and you will also be able to fund any growth projects you may have. When your manufacturing clients call on you to bring in your trained staff of temporary personnel, you will have the financial resources you need to get the job done.