Financing Solutions
for Service
Companies

Liquidity from credit facilities is key to financing service companies and helping them to keep payroll flowing while waiting for receivables to be collected.

Asset-based loans enable service companies to thrive, even without tangible assets

Asset-based loans work great for capital-intensive industries such as manufacturing, but service companies—even without many (or any) tangible assets—can take advantage of this alternative financing option.

We are dedicated to understanding the unique needs and challenges of your service company—this ensures that our comprehensive financing solutions are delivered specifically for you and your industry.

Accord has experience financing service companies in a variety of industries including:

  • Temporary personnel agencies
  • IT training
  • Oilfield services
  • Healthcare
  • Cleaning
  • Security
  • Engineering
  • Maintenance
  • Assembly
  • Promotion / loyalty marketing

The primary cost for most service companies is labor, which is often paid weekly. However, it can be a challenge to match your incoming cash flow to these weekly expenses.

This is where a flexible financing for your service company becomes critical. After issuing an invoice, you may have to wait another 45-60 days for the customer to make the payment. This means that your service business may have to finance as much as three months’ worth of payroll before receiving any cash flow from your customers.

Financing growth is another challenge for service companies. If your service company is in growth mode, you need financing that can keep up. However, the options available to finance service companies in these situations are somewhat limited.

Service companies typically do not have a significant amount of tangible long-term assets. This means traditional bank financing may not be an option, because a young, growing service company will not have the track record needed to meet a bank’s requirements. So where do you turn?

An asset-based loan with accounts receivable financing might be the best solution to finance your service company. Accounts receivable financing with Accord allows you to borrow up to 90% of your receivables to help your service company thrive.

You may not initially consider an asset-based loan to finance your service company, because you do not have significant tangible or long-term assets. However, a growing service company like yours will have a large amount of accounts receivable, which can be used to finance your business through an asset-based lender such as Accord.

Leveraging your accounts receivable provides relief on your cash flow strain and enables your service company to achieve its growth potential. Our accounts receivable financing facilities fluctuate in tandem with the changes in your receivables without any restrictive covenants or ratios that limit your ability to borrow.

With A/R financing for your service company, you can put your worries about cash flow behind you, and focus in on managing your business. Whenever you issue invoices, Accord will immediately provide the necessary funding to cover your payroll and other critical operating costs.

It’s a great time to be in the service industry, and with the right financing, your company can take the next step to sustained growth.

The service industry in Canada and the US is experiencing an important period of growth. Both consumers and businesses are spending larger amounts of services. In fact, the service sector now accounts for 80% of economic output in the US, and over 70% in Canada, providing an excellent opportunity for service companies.

Most services companies are not capital intensive, so you don’t have to make major investments in long-term assets such as production/warehousing facilities and equipment. To finance your service company, you can avoid the complexities of financing equipment or other major capital expenditures that require long-term finance agreements. You have the ability scale up your service business very quickly as opportunities presents themselves.

Frequently Asked Questions

Service company financing refers to any variety of financing solutions for service companies. If you need financing for your service business, accounts receivable financing from Accord is a great way to access additional capital to help your business grow.

Your service company can get financing from Accord for a wide variety of industries, including:

  • professional services (legal, IT, accounting, financial, administrative)
  • staffing companies (healthcare, security, janitorial, cleaning)
  • public services (medical, hospitality, plumbing, repair, funerals)

We are dedicated to customizing the financial experience based on your business and industry.

 

Payroll financing provides funding to your service company so that you may pay invoices as well as make payroll on time. This is particularly relevant if you are a staffing company, as quite often staffing companies can support substantial revenue growth by using accounts receivable financing or factoring.

 

If your staffing agency (or other service company) hasn’t received payment from a client, but needs to make payroll for your employees, payroll funding provides an advance based on the receivable from your client.

Factoring (or accounts receivable financing) is commonly used as payroll funding for staffing companies in these situations.

When looking for fast service company financing, you need to turn to a financial company that will work at the speed of your business to quickly structure and fund your financing needs.

At Accord, financing for staffing agencies and other service companies is often approved in as little as a few weeks.

Invoice factoring provides the money for the services you provided 30 days or more in advance of your typical A/R cycle. This advance provides additional working capital that will allow your staffing company to hire and deploy more employees or take advantage of other growth opportunities.

Do you want to know how fast you can start with invoice factoring for your staffing company? Call now: +1-844-932-9940 (Canada) or +1-844-725-4225 (US).

Yes! Factoring is an efficient payroll funding tool to help your small business or startup staffing company increase cash flow. By utilizing payroll funding, your business can outsource the administration of your accounts receivable and free up cash to invest on more strategic company objectives.

Call us to learn how you can take advantage of payroll funding for your small business or startup: +1-844-932-9940 (Canada) / +1-844-725-4225 (US)

Payroll factoring involves the transfer of your accounts receivable to a factoring company, whereas you can also fund your payroll by payroll funding through an operating line of credit, asset based lending or other type of financing.

When compared, factoring companies can offer services including credit guarantees and can administer the accounts receivable on your behalf, services that may not be offered with payroll funding.

When looking for a company to provide you with payroll funding services, you will want to find a lender who:

is responsive,
listens to your specific needs, and
provides a financing solution customized to suit your business.
Accord has a track record of successfully financing companies similar to yours. Visit our recent transactions to see some of the deals that we’ve funded, or read about what our clients have to say about us in our client testimonials.