While payroll funding is a huge part of every staffing firm factor’s business, it’s not the only service a factor provides.
Factors offer a type of staffing agency finance called payroll factoring. With factoring, staffing firms sell their accounts receivable invoices for a fee to factors and gain cash up front to pay their employees and other related parties.
Unlike traditional financing, temporary agency payroll funding provides cash quickly without the hassles of lengthy business and financial reviews.
Full-service payroll funding provides back-office administrative services that allow you the freedom to focus on growing your business while the factor handles the details, such as filing payroll taxes, sending invoices and collections. Look for a factor that can:
- Pay your temporary employees via check, direct deposit or payroll card
- File and pay your staffing firm’s payroll taxes
- Invoice your customers
- Collect from your customers and follow up on delinquent accounts
- Monitor creditworthiness of your customers
- Deliver certainty with one low, fixed fee
- Prepare extensive management reports on the administrative and financial activity of your firm
- Provide software to manage your office
Your factor should also operate as a virtually invisible partner. Your employees and customers should see your temporary staffing firm’s name on their checks and invoices, and the factor should perform collection assistance as a representative of your company, providing the same great customer service your customers have come to expect.