One of the prevailing myths in the temporary staffing industry is that only large firms can receive payroll funding, and this is myth should be put to rest once and for all.
Firms of all sizes and in all stages can receive temp flexible funding, whether you are just starting a temp agency or are established in the field, and whether you have five clients or 50. Payroll funding is also available for firms in any staffing industry, from light industrial, administrative, IT, construction, health care and legal to clerical.
Obtaining temp flexible funding from a factor, especially one that specializes in the temp staffing industry, is often the best choice for temporary agencies. In factoring, temp agencies sell their accounts receivables to a factor for a fee to obtain cash.
Staffing industry factors are often more understanding of your firm’s unique needs than a traditional lender would be because they work specifically within the industry and understand that your temporary employees are often paid weekly, while clients don’t pay for 30, 45 or 60 days, creating a cash flow gap. So if you need quick funding to cover your workers’ compensation costs or office lease payments, or need a larger-than-usual advance to open a new branch, you have a better chance of getting it from a factor than you do from a bank.
In addition, factoring companies are fiercely competitive and want to keep your business, so they’ll generally be more open to requests than a bank would be.
For information on how TemPay can provide temp-flexible payroll funding, contact TemPay here or via phone at (866) 683-6729. Please browse our Resources section for ample information on various temp staffing funding topics, and start-off with TemPay by completing our easy, preliminary credit application.