Payroll factors such as TemPay provide a service in which staffing agencies sell their accounts receivable 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 where employees and vendors are often paid weekly while customers take 30, 45 or even 60 days to pay.
Payroll factoring is typically offered in two ways:
- Money only. This funding solution does not provide administrative support.
- Full service. With this option, the factor not only provides you with payroll funding but also handles your staffing agency’s payroll, invoices, taxes and collections.
Both forms provides numerous benefits, as they allow you to quickly receive the working capital you need to operate and grow your business without the hassles of the lengthy business or financial reviews of traditional financing.
Payroll factoring is also typically a more flexible form of staffing agency finance than bank funding, and factors are more likely to consider special requests, such as an overadvance.
TemPay provides both money-only and full-service payroll factoring.
We advance 90 percent or more of your invoice total, among the highest advance rates in the industry. We also offer TemPay Complete Solutions Software®, customized comprehensive software to help staffing firms perform all major front- and back-office functions and tasks.
For information on TemPay and our payroll factoring & funding services, visit our Contact page to get a conversation started, or call (866) 683-6729. Please visit our Resources section for deeper understanding, or get started with us more quickly by completing our easy credit application here.