Payroll factoring is a perfect form of staffing agency finance for small businesses because the process is quick and easy. In payroll factoring, you sell your accounts receivables invoices for a fee to obtain immediate cash. Your clients then pay the factor.
This type of staffing agency finance allows you to manage your agency’s cash flow in an industry in which employees and vendors are often paid weekly, while customers take 30, 45 or even 60 days to pay.
The benefit for small businesses and those starting a staffing agency is that the money is available within 24 to 48 hours of sending an invoice, ideal for those who need money quickly to cover overhead costs or employee wages. All that is required is the accounts receivable invoice rather than the collateral or lengthy company history required by many traditional banks.
The money you obtain from factoring can also be used for growth and expansion, perfect for new and small businesses.
Businesses that take advantage of full-service factoring also have the advantage of being able to spend more time on the business while the factor handles your payroll, invoices, taxes and collections.
For information on payroll factoring for small businesses, visit www.tempay.com or call (866) 683-6729.