How to Get Advanced Payroll Funding for Your Staffing Agency
America’s staffing companies hire nearly 16 million temporary and contract employees per year. Temporary staffing is growing rapidly and the companies that offer these services must keep up with the expansion but battle the ensuing cash flow issues. Workers want to receive weekly or bi-weekly payment at the very least and big companies take 45-60 days to pay. Advanced payroll funding is essential to growing your business and keeping both employees and customers happy. Temp staffing agencies from tech to security to janitorial do not receive payment from their clients until after they have filled their job vacancies and those persons have actually worked. The time between hiring to initial payroll to getting paid by their larger client can overextend a staffing company.
When a company chooses to leverage invoice factoring for payroll financing, they will be able to secure up to 92% of their invoices value within 24 hours of services delivered. Guard, staffing and Temp agencies that suffer from cash crunches (even if only occasionally), should research invoice factoring for staffing companies. It is a great way for a small business to get money when they need it. We call it advanced payroll funding with credit protection. What is credit protection? It protects you from your large clients filing bankruptcy.
Temp agencies no longer have to worry about qualifying for a working capital payroll loan. They simply need to provide the Factor with the invoices they wish to sell along with each employee’s time sheets. They will then be able to deposit cash into their bank account within 24 hours. This will allow the temp agency to meet their monthly obligations without taking on new debt.