In those situations, they turn to a payroll factor to provide the necessary financing for weekly payroll and other expenses, such as workers’ compensation insurance, office equipment, additional office personnel and marketing.
Payroll factors such as TemPay finance staffing firms so they are able to operate and grow their business. Because of this, it is in your best interest to share information about your financial partner with your customers to assure them of your financial strength.
Disclosing the Role of Your Payroll Factor
Disclosure also ensures that each customer remits payments to the correct address, maintaining consistent cash flow.
There are two ways to disclose your funding relationship with your payroll factor.
- UCC notification letter – The payroll factor mails this letter to each customer to inform it that you have partnered with the factor.
- Personal call – Contact each customer prior to mailing so they are not caught off guard by the letter.
Some clients may request a letter of financial strength. Your payroll factor should be more than happy to forward this letter so your customer can be assured you have access to unlimited funding.