Top 5 reasons to consider payroll factoring

Payroll factoring is a favored form of staffing agency finance, and it’s easy to see why.   With payroll factoring, staffing agencies sell their accounts receivable invoices for a fee to obtain immediate cash. Your clients then pay the factor directly.   Still not convinced? Here are the top five reasons you should consider payroll […]

Managing risk when selecting a staffing niche

Payroll factoring within a niche is a great way to provide more personalized and tailored staffing services with a deeper understanding of a specific industry. However, there are some things to keep in mind when selecting your niche.   “Regardless of the niche, the greatest overriding concern is the risk involved,” TemPay Chief Operating Officer Marc […]

Payroll factoring in niche staffing

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 […]

What types of invoices are eligible for payroll factoring?

Full-service clients are required to allow TemPay to handle all of their temporary business. Money-only clients must offer the opportunity to factor all new customers, and if we choose not to factor a particular customer, your staffing service can choose to self fund.   As the factor, we: Verify your invoices with your clients’ accounts […]

How do my customers know where to send payments?

Under Article 9 of the Uniform Commercial Code, payroll companies such as TemPay are required to notify debtors (your staffing firm’s clients) that their invoices have been sold.   In addition, invoices that TemPay factors are required to have TemPay’s UCC notification information included, as well as our remittance address for payments.   If a […]

How and when do I receive money from my factored accounts?

At TemPay, we pride ourselves on our quick and easy payroll factoring application process.   When you contact our sales department, a sales representative will collect information about your staffing agency. You will then complete a confidential credit application form that includes both personal and business information.   After receiving the application, TemPay will initiate […]

How does payroll factoring compare to an accounts receivable line of credit?

While both payroll factoring and accounts receivable lines of credit deal with accounts receivable, they are, in fact, two different types of staffing agency finance.   • With factoring, staffing agencies sell their accounts receivable invoices for a fee to obtain immediate cash, and their clients then pay the factor.   • An accounts receivable […]

What is accounts receivable finance, and how can it benefit my business?

Accounts receivable finance, also called payroll factoring, is a type of staffing agency finance in which you sell your accounts receivable invoices to a factoring company for immediate cash. Your clients then pay the factor directly. The benefits of this type of financing are tremendous in an industry in which employees and vendors are often […]