When searching for staffing agency finance, you have probably run across accounts receivable factoring, a type of funding in which you sell your accounts receivable to the factoring company for a cash advance. Your clients then pay the factor directly.
Firms of all sizes and in all stages of their life cycle can receive accounts receivable factoring, whether you are just starting a temp agency or established in the field, and whether you have five clients or 50.
Funding is available for firms in any staffing industry, whether it is light industrial, administrative, IT, construction, health care, legal or clerical. Many a factoring company will also provide factoring to companies outside the staffing industry, as well.
Payroll factoring aids your staffing firm by providing quick and easy cash to fund your business in an industry in which companies often suffer from cash flow gaps.
There are typically eight easy steps for receiving accounts receivable factoring from a factoring provider.
- Contact the sales department of your factoring company.
- Your sales representative will collect information about your staffing business.
- Complete a credit application form and provide client information.
- Your factor performs a credit check on you and your business.
- Your factoring company approves your credit.
- Your factor meets with you to discuss rates, terms and conditions.
- Your factor collects additional information as needed.
- Your factoring company provides you with a draft contract that includes terms, conditions and rates.
Are you in the market for a factoring company? For information on TemPay and our payroll factoring services, please contact TemPay by our easy form or by phone at (866) 683-6729. You can also simply apply for credit here to get the entire process started.