Through payroll factoring, 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
Payroll factoring offers a steady flow of income that helps bridge the gap between revenue and expenses.
It can also be used to start a staffing agency, which is especially helpful for those with no collateral or credit history. In addition, factoring companies are typically more lenient than traditional financiers and are 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.