Why is payroll factoring an effective form of financing for small businesses?

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 […]

Limitations of Bank Payroll Funding

When you’re starting a staffing agency, a bank is often the first place that comes to mind when you’re looking for payroll funding. However, just because banks are the traditional means of finance doesn’t mean they are the right option for your business. There are several downsides to bank payroll funding.   It takes time. […]

Should You Stay or Should You Go? How to Deal with Difficult Clients Without Losing Your Cool

If you run any type of business you’ve probably had at least a few clients or customers that give you a knot in your stomach when you see their email pop up in your inbox or their phone number flash on your caller ID. They’re the “problem clients.” They never seem to have a good […]

What to Look for in a Factor

Deciding to pursue temp factoring is the first step, but what should staffing firms, including those who are starting a staffing agency, look for in a factor? Bruce Friedman, Business Services & Outsourcing Partner at BDO, recommends asking peers within the staffing industry for referrals. “Ask around and see if you know somebody who has used the […]

Determining your staffing niche

To determine your staffing niche, think about the intelligence and experience of yourself and your key management personnel. Then evaluate your strengths and weaknesses to determine where your center of expertise lies.   If you have experience as a temporary staffing employee in the administrative niche, it makes sense to target that niche because you […]

The Benefits of Factoring

Understanding the details and proceeding with temp staffing factoring offer valuable benefits to the staffing firm. Factoring generally provides cash more quickly without the hassles of financial reporting review. For example, a traditional lender usually asks and takes significant time to review the staffing firm’s financial statements and tax returns, whereas a factor usually doesn’t […]

Why is payroll factoring better than a small business credit card?

When your staffing firm has a cash flow issue, it may seem like an easy fix to reach for the plastic. However, there are downsides to using small business credit cards. Credit cards require a great deal of personal management to stay abreast of changing terms, interest rates and even perks. Your business credit card […]

6 questions to ask your payroll factor

Not all payroll factors are the same. Some operate only within specific industries, and the rate advance can vary. When reviewing payroll factoring prospects, ask these six questions to gain valuable information to make an educated decision. 1. How can I be assured my company will receive funds? Your staffing firm needs steady cash flow, […]

Understanding Recourse and Nonrecourse Factoring Services for Staffing Firms

Most staffing agencies choose payroll factoring as their type of staffing agency finance. With factoring, staffing firms sell their accounts receivable invoices for a fee to the factor and gain cash up front to pay their employees and other parties. There are two different types of factoring. Recourse – With recourse, the staffing firm assumes […]