Cash Flow Crunch Threatens Staffing Firms Despite Growth

Commercial staffing reaches a new high for 2024, yet year-on-year figures highlight ongoing cash flow crunches throughout the industry.

EL PASO, TX, UNITED STATES, October 10, 2024 /EINPresswire.com/ -- Leading invoice funding company Viva Capital says that, despite the optimistic predictions, ongoing challenges are creating a cash flow crunch for staffing businesses across the country. Additional topic coverage is available in “How to Build Cash Flow for Your Staffing Company Through Factoring,” now live on VivaCF.net.

The latest guide comes on the heels of a new Staffing Industry Analysts (SIA) release, which indicates temporary staffing hours worked in the U.S. are down by seven to 12 percent year-on-year. However, a recent uptick shows a week-on-week increase of two to nearly four percent, with commercial staffing reaching its highest levels so far this year.

“Over the past few years, we've seen the staffing industry face constant demand fluctuations, creating significant challenges for firms across the country,” says Greg DiDonna, President and Partner of Viva Capital. “However, the industry has proven resilient, and with the right financial strategies, staffing firms are well-positioned to thrive as we move into the new year.”

DiDonna notes that unpredictable demand makes it challenging for staffing firms to manage workforce levels, often leading to over or under-staffing. This uncertainty can hinder their ability to scale operations quickly when demand increases and make it difficult to cover everyday expenses.

He adds that firms using invoice factoring are more equipped to handle these fluctuations, as it can provide immediate cash flow as soon as hours are logged. This allows staffing firms to eliminate the lengthy waits for client payment and reinvest in growth immediately.

“In dynamic markets like this, the ability to scale on demand is essential,” DiDonna contends. “Firms that can adapt quickly to shifting demand are the ones that will succeed, and invoice factoring provides the cash flow needed to stay flexible and grow.”

With positive forecasts for the staffing industry in 2025, DiDonna emphasizes that now is an ideal time to be in the field, provided firms address their cash flow concerns.
To learn how invoice factoring can support growth and stability, visit Viva Capital at VivaCF.net.

ABOUT VIVA
Founded in 1999, Viva helps B2B businesses of all types accelerate cash flow through specialized funding solutions like factoring, accounts receivable financing, and asset-based lending. Their simple qualification process makes it easy for small and mid-sized companies to get vital funding despite lack of credit or time in business. Additional information is available at VivaCF.net.

Armando Armendariz
Viva Capital Funding
+1 915-615-6664
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