All funding sources regardless if they are commercial banks, private equity, or asset based accounts receivables firms, desire as much certainty as possible in the businesses they finance. Unfortunately as we have been finding out, the ACA has added a great deal of uncertainty to many areas of the staffing business — especially in the area of margin optimization and back office management. Most likely these ACA pricing vagaries will impact our industry over the next few years since we will not be able to predict true costs of our temporary labor, and hence our net profits. All this potentially may hamper your relationship with your funding source.
Here is a great short article about how the unknown costs of ACA on the labor market is negatively implanting business in general and staffing specifically,
http://blogs.wsj.com/cfo/2013/10/15/health-law-stirs-lending-worries-for-small-business/
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All this also means that where workers compensation and back office expenses are concerned, partners that can bring more stability in your cost model, will provide a much higher value for your staffing company in these areas.
Please feel free to contact me at davidstaffing@gmail.com or visit us at www.StaffingCompSolutions.com so we can discuss options in this area.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.