There have been thousands of military reservists that have been called to active duty since the year 2003, so they are not not available to work at their civilian jobs. Therefore, businesses with employee absences are likely to experience productivity losses, decreased performance, as well as decreased revenues. Invoice factoring can help get them through until new staffers have been hired and are in place.
This loss of productivity may substantially exceed the employee’s foregone wages and lower the small businesses’ profitability, and in addition, the firm may face increased costs due to mandatory requirements of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA.1) which includes the continued benefits for reservists, and higher management costs for new hires. Employers are prohibited by Federal law from discriminating against any of their employees participating in the Reserves.
Small businesses can be affected because there are higher numbers of activated reservists that may be drawn from small firms than would be expected given their relative share of the total civilian workforce; and the average activation may have a greater relative impact productive hours lost in small companies.
This is why invoice factoring for small business often helps these businesses recover temporarily from these kinds of losses.
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