Collectively Speaking: the Staffing Industry
“Collectively Speaking” is a series of articles offering ARM industry tips to credit and collection professionals. Written by John Whyte, Vice President Business Development, Brown & hottest celebrities
Joseph, Ltd. December 9, 2013.
For the next several issues, Collectively Speaking will be industry specific and we will share some expertise and insight. This month the focus is on the Staffing Industry.
Current Standard Industrial Codes (SIC) list over 13,000 placement agencies which includes temporary, labor, IT, and medical (nurses, in home care) etc. It is an extremely cost intensive industry; fast paced, and highly competitive. Staffing Industry employees are paid weekly. Payroll and other costs are paid before the related invoices are even generated, much less sent or paid.
In the current economy, companies who have lost employees or downsized can turn to the Staffing Industry to help alleviate work overload. One time orders from a company having cash flow or financial difficulties will bounce from firm to firm leaving a trail of unpaid invoices. Minimal credit losses are essential for survival, much less growth.
Cash is king and the next best thing is accounts receivable. Survival and growth come with cash flow, and knowledge is power. You can minimize credit losses by utilizing business practices discussed in previous Collectively Speaking columns and articles found in our newsletters:
- a good credit application
- a quality, enforceable personal guarantee
- solid internal collection procedures and techniques
The management of accounts receivable is a constant on-going business function. Good people, systems and procedures help, but, often are not enough in this ‘do more with less’ business environment. This means that only so much time can be spent pursuing aging receivables because there is a new month of current ones. And so the cycle continues.
When considering the use of an outside firm to assist with recovering non-paying accounts, use the same criteria you would in selecting any business service; firm reputation, compatibility and performance. The company should be fully licensed and bonded, and have a proven track record in the Industry.
For more information, contact us today.
About the Author: John Whyte has been the V.P. of Business Development for Brown & Joseph for 16 years. John has over 30 years of experience in the credit and collections industry. He has helped numerous clients, from fortune 500 companies to small businesses, minimize charge offs and improve DSO. John can be contacted via email at email@example.com.