The beauty of payroll factoring is that the service allows you to focus on your business while the factoring company handles the details.
The bulk of your efforts are required at the beginning of the factoring process, when you fill out a credit application form and discuss rates, terms and conditions with the factor.
Once you sign an agreement, your factoring company will set up procedures for funding your payroll. You will need to provide names, Social Security numbers and other employee information, as well as a list of your accounts receivable invoices and copies of the invoices and timesheets.
As new employees are hired, current ones leave the company or pay grades change, you’ll need to update your factoring company. You also need to send additional accounts receivable invoices as you generate them.
If you are a full-service client, you will need to regularly provide the factor with additional information, such as tax documents or delinquent accounts.
Communication is key. If you have questions, problems or concerns, speak honestly with your factor. Developing a strong relationship will ensure your payroll factoring process operates smoothly.
And don’t forget to review your options annually. Banks and other payroll companies often offer aggressive rates to hook new business, so if you find a lower rate, let your factoring company know. It will most likely beat the price to keep you as a client.
If you are interested in discussing what TemPay can do for you as your new or first factoring company, please reach-out and let’s have a conversation. You can also start the process by completing our easy Credit Application form. You’ll find that our professionalism, years of experience, and valued financial services to temp agencies will be hard to beat!