Through a payroll factoring company, staffing agencies sell their accounts receivable invoices for a fee to obtain immediate cash. The staffing agency’s clients then pay the factoring company directly.
This arrangement provides your staffing firm with:
- Instantaneous cash to operate and grow your business instead of waiting the traditional 30, 45 or even 60 days for payment
- The necessary cash flow in an industry where you often need to pay employees and vendors weekly while waiting for client payments
This cash can be used for expenses such as:
- Office lease payments
- Employee wages and more
A payroll factoring company offers a steady flow of income via payroll factoring that helps bridge the gap between revenue and expenses for struggling or growing temp agencies.
Payroll factoring can also be used to start a staffing agency, which is especially helpful for those with no collateral or credit history. In addition, a factoring company is typically more lenient than traditional financiers and is willing to make exceptions in circumstances such as over advances for unforeseen cash flow needs.
For information on how TemPay can provide payroll factoring services that help your staffing company with cash flow, contact us via form or by phone at (866) 683-6728. Learn about the many financial services we offer staffing agencies on this page. Discover the history of TemPay that has enabled us to be leaders in the payroll factoring field by visiting this page.
Please visit our Resources section for FAQs, infographics on our processes, industry links and more. When you’re ready to engage with us, you can begin by completing our easy Credit Application form to get the ball rolling with TemPay – we’d like to be your payroll factoring company and help your agency achieve greater success.