Staffing Industry Analysts reports staffing revenue in 2013 is expected to hit nearly $135 billion, exceeding prerecession revenue levels.
Whether you’re starting a staffing agency or have been in business for a while, your company has the potential to grow monumentally in the next few years, and factoring — a form of payroll funding in which temp agencies sell their accounts receivables for a fee to obtain cash — can help accelerate that growth.
Increased cash flow
When you engage in payroll funding, you don’t have to worry about whether you’ll have the money to fund your payroll each week. That frees up your finances, which you can then invest in growing your business by hiring more employees, expanding your current location or opening a new location.
Payroll factors understand that your temporary employees are often paid weekly, while your clients don’t pay for 30, 45 or even 60 days, creating a payroll funding gap. So if you need additional funding to cover your workers’ compensation costs or office lease payments one month, or a larger-than-usual advance to open a new location, they understand your business and will help you meet your goals.
Full-service payroll funding allows your factor to provide back-office administrative services such as filing payroll taxes, sending invoices and collections. Outsourcing these services frees up time for you to focus on other aspects of your business that will help it grow, such as meeting with clients or interviewing new temporary employees. With less time spent in front of a computer doing mundane tasks and more time spent strategizing and networking, your business will continue to grow and thrive.
For information on how TemPay can help your staffing firm grow, contact www.tempay.com or (866) 683-6729.