Staffing Company Business Loans
Staffing companies have a lot of expenses—and Shield Funding has been working with them to cover those expenses for 10 years. Getting a loan at the right time can turn a difficult situation into an opportunity to take advantage of. We can help you get the business financing you need to succeed.
Building your staffing company has been hard work. Until now, it’s been about you and the relationships you’ve developed. But now it’s time to grow. You might want to increase your client base, expand to a new industry, or build further brand awareness.
These are great goals, but they all require money.
Or maybe you’re facing a seasonal downturn that requires a bit of extra cash to make payroll. Whatever the case, we can help you get the business funding you need to run or grow your business. You can get started online and get approved and funded as fast as the same day you apply. Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
What Do I Need to Qualify?
Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
Small Business Loans for Staffing Companies
Adding more employees and upgrading your technology will help you place more candidates with companies. And that means more revenue for you. But you’ll need to make those investments up front.
With business funding up to $1,000,000 available, you can use a loan from Shield Funding to get the resources you need. We offer terms between 2 and 36 months, so you can get a loan that fits with your business plan and seasonal cash flow.
Based on your credit history and business experience, rates range from 5–45%. To qualify for a small business loan you will need to have been in business for two months and pull in a minimum of $8,000 in monthly revenue.
With a flexible small business loan, you’ll be able to respond to any need you come across, whether it’s a quick fix for your tech stack or a big investment in new employees.
Unsecured Business Loans for Staffing Companies
Many banks require some form of collateral to secure small business loans. No property or equipment to use as collateral? No problem—you can still access the cash you need.
With loans up to $1,000,000, our unsecured business loans help you meet your business goals. You don’t need to risk important resources like your computer system or your great location just because you need a bit of financial help.
Our unsecured business loan terms range from 2–36 months, and you can get loans with interest rates as low as 9%. With a quick approval and payment turnaround, this loan can help you get your marketing, hiring, or overhead payments on track fast.
Bad Credit Small Business Loans for Staffing Companies
The job market is a volatile place—and that makes a staffing company a potentially risky business. It’s not unusual to have some issues with your credit. Getting a loan from a traditional lender with a bumpy credit history can be a problem.
But we work with borrowers who have credit scores of 500 or more. So if you’ve had some trouble, you can still get the funding you need to run or grow your business. And we offer bad credit unsecured business loans with interest rates as low as 12%. So you won’t like we’re taking advantage of you.
With terms ranging from 2–18 months (and sometimes slightly longer, depending on your credit history), you can get the loan that works for you. As long as you’ve been in business for two months, you can qualify.
Working Capital Loans
Revenue timing for staffing companies can be difficult. Seasonal swings, economic changes, and other factors don’t always match up with the expenses you need to pay. If you’re growing your business, that can cause even cash flow more problems. So you need to make sure you have the necessary cash available.
A working capital loan makes your funding situation much more flexible. These loans finance the daily operational expenses of your company.
You may qualify for a working capital loan up to $1,000,000. With a minimum credit score of 650, rates range from 9-45% depending on your exact qualifications. As long as you’ve been in business for two months, you can qualify for a working capital loan to cover your expenses.
Now that you’ve seen some of the ways we can help you with financing, let’s look at where you might spend that money to run or expand your company:
Payroll and Benefits
Findings jobs for people is a time-intensive exercise and requires a solid full-time staff. You need to pay those people, whether companies are paying you at the moment or not. Seasonal changes in hiring can make that difficult.
On the other hand, expanding your business means hiring more employees. You’ll need to make more connections with companies, spend more time looking for jobs, and interview more candidates. You may also have to pay for travel, company vehicles, or related expenses, depending on how you run your staffing agency.
And, of course, you’ll need to consider benefits for full-time employees. The average cost of benefits is over $11 per hour. That’s a significant amount you’ll be paying to keep your employees insured and happy.
You’re an expert in the field of staffing, so none of these expenses will come as a surprise to you. Just remember that if you can’t make those payments, you’ll be in serious trouble. Make sure you have enough cash on hand to make payroll every month—and if you can’t, don’t be afraid to take a business loan to cover the cost.
Finding the right candidates for your clients is crucial to the success of your business. And that means having the right technology. Recruitment software and website subscriptions can be a significant investment, but they’re the tools of the trade.
Because software has mostly gone to a subscription model and you’ll need to pay monthly fees for recruiting site subscriptions, you’ll need cash on hand every month (or every year, depending on your subscription) to pay for them.
If you miss a payment, you’ll lose one of the most important tools for doing your job. And that can cripple your business.
You’ll also need more licenses when you expand your business. Many members of your staff will need access to these tools, and that requires an extra outlay of cash. You may need to make that payment before you start seeing the benefits of placing more candidates, too.
And if you want to break into a new area of staffing, you may need new tools. If it’s a big enough jump, a small business loan might be the kickstart you need to make it happen.
Advertising and Marketing
How do you find the best candidates for your clients? In many cases, you’ll do it through a solid marketing and advertising campaign. And getting in front of the best recruits costs money.
It might a word-of-mouth campaign, a strong social presence, or an all-out advertising blitz. No matter what it is, it will cost you money. You’ll need people on staff to make it happen. You’ll pay for advertising space. Hire developers to make your website great. There are always more marketing and advertising expenses.
Many staffing agencies like to have an in-person presence at trade shows and related events—and that’s expensive, too. But those events are great for finding top-notch candidates that you can pass onto your clients.
A Great Location
Depending on the type of staffing you do, you may need to invest in an office that’s easy for people to find and on a main thoroughfare so it catches the attention of passersby. This type of space can be expensive.
You might pay thousands of dollars in rent every month to get an office that attracts the right kind of recruits. That adds up to a massive expenditure over the course of a year or two. But if you recruit in person, it will be worth the expense.
Even if you don’t host recruits in your office, you may want to bring in potential clients to wow them with your professionalism and the results you’ve earned for other companies. Having an attractive office in a high-value location works wonders in these situations, too.
Whether you decide to shell out $4,000 every month for a fancy downtown location, you cut costs by maintaining a small office presence in an out-of-the-way town, or you run a completely remote operation, you’ll need to think about how you present yourself to the world.
That might mean plush furniture or a live chat option on your website. Either way, your presentation needs to be great.
Want to find out more about how we can help your staffing agency? Get in touch today and we’ll tell you about how we can make it possible for you to run or grow your business—the way you want to.