1. Skip to Menu
  2. Skip to Content
  3. Skip to Footer>

Staffing Companies Set to Benefit from Expanded Federal Reserve Programs

Tuesday, 18 September 2012 22:06

staffingThe Federal Reserve recently announced a number of aggressive moves intended to stimulate economic growth and provide businesses with added reasons to expand and take on new employees. The centerpiece of the new initiatives is the expansion of the Fed's current mortgage-based asset purchasing program, a critical element in creating increased availability for money in the commercial lending environment. This continuing focus on increasing the supply of lendable money in the marketplace is intended to reduce the unemployment rate and boost job growth throughout the U.S. Staffing companies may reap the benefits of this increased focus on loose money policies; as companies expand their operations, new personnel will be required to handle the added workload. As a result, the demand for employment consultants and staffing services is expected to grow significantly in the coming months.

Signs of improvement

Market analysts are already predicting modest growth in the IT, health care and transportation sectors, driven in part by existing trends. Increasing demand for mobile technologies has led to healthy competition and expansion in the IT field, while health care and transportation industries have seen gradual but sustained growth in recent months. Staffing firms that cater to these industries are likely to see increased business and demand more rapidly than those serving other areas of the industrial marketplace.

Managing the demands of economic growth

Staffing firms can prepare for the expected increase in demand by making plans to expand into new territories and new specialties now. However, many of these companies may lack the cash on hand to launch new offices and market their services effectively. In some cases, these employment agencies may be the first beneficiaries of the increased availability of funds for business lending. By obtaining a business line of credit or commercial business loan, staffing companies can ensure that they have the necessary resources to take advantage of these opportunities when they arrive.

Business expansions and staffing company growth

For most staffing companies, the primary expense in any business expansion plans will be acquiring additional office space and personnel to staff them. Employment agencies require qualified staff to evaluate and promote their candidates to companies in the local area. In order to finance these expansions, staffing companies must provide collateral and present a viable business plan for lenders.

Securing necessary funding

Significant collateral may be required in order to obtain financing for the planned expansion. Collateral may include any of the following:

  • Existing real estate holdings, including corporate offices
  • Marketable securities
  • Office equipment
  • Vehicles, including cars, trucks and boats
  • Accounts receivable

Additionally, staffing companies must document and present a comprehensive business plan to lenders in order to enhance their chances of receiving funding. Lenders are primarily concerned with the company's ability to repay the funds as agreed; presenting the right information in the right format can go a long way toward achieving that goal.

Exploring the business lending marketplace

CNF Exchange provides staffing firms with access to a wide range of lending solutions, including venture capital financing, traditional bank loans and business bridge loans. Each of these lending arrangements can provide cash on hand for expanding into new territories and making the most of the opportunities available in today's recovering economy.

Need Staffing Company Funding?Funding Request for lenders, investors and loans. Fund Staffing Companies?Business Loans Registration

Capital & Finance Blog