When factoring to different staffing niches, the process is essentially the same, regardless of the niche, when it comes to Uniform Commercial Code filing and notification, verification of invoices and collection practices.
However, there are some differences in payment terms depending on the industry, says Brian Keuper, senior vice president and client relations manager at TemPay. Most staffing niches have a standard net 30-day term, but some, such as medical staffing companies, extend the terms to net 45- or net 60-day terms.
Staffing firms of all sizes and in all stages of their lifecycle can receive payroll factoring, whether you are starting your own staffing agency or established in the field, and regardless of your number of clients.
Payroll factoring is available for firms in any industry, including:
- Light industrial
- Information technology
- Health care
- Clerical and many others
When selecting a factor, choose one that specializes in staffing firms. These factors will better understand how your business operates and what its unique needs are, which is critical when temporary employees are often paid weekly but clients don’t pay for 30, 45 or even 60 days, creating a cash flow gap.
If you need quick funding to cover your workers’ compensation or office lease payments one month, or a larger-than-usual advance to open a new branch, a factor specializing in staffing will understand your situation and be more capable of assisting you.
“To be honest, all credit and background checks of account debtors are done in the same process in all niches,” Keuper says. “Looking for creditworthy account debtors is universal and not dependent upon a certain niche of any industry. At TemPay, we just ensure that we are advancing money to clients that have creditworthy customers who will have the resources to pay within a timely manner.”