For many businesses, payroll funding through invoice factoring is a major key to success. With employee salaries looming at the very top of many business owners’ budgets, finding good payroll financing solutions with a trusted payroll funding company remains an urgent priority. Your loyal employees are often your greatest resource, but running out of cash on payday could damage those relationships and even close your doors.
Let’s see how top-tier payroll funding companies can resolve these concerns, with a special look at payroll funding for staffing companies.
Staffing Payroll Funding Challenges
Temporary staffing companies, whether they place office workers or doctors, can face similar cash flow challenges:
- Slow-paying customers with 30, 60, or even 90-day terms
- Delay between paying temporary workers and customers paying for their services
- Seasonal ups and downs
- Rapid growth without deep reserves to cover payroll
- Poor credit history
- Shortage of funds available for expansion and growth
Payroll funding for staffing helps you manage these challenges and plan for the future. The process closes the gap between paydays for your temporary workers and waiting weeks and months for payment from customers. Even if you have a start-up business with no credit history or have been turned down for a bank loan, you can qualify for payroll funding for staffing agencies.
Payroll Funding for Temp Staffing
The process is simple. Payroll financing companies purchase your outstanding invoices in exchange for upfront payment to you. You can use that advance to cover paychecks to your staff, pay off suppliers, expand your business – whatever your company needs for success. You get paid for your invoices right away – no waiting for customers to send in their checks.
Not only will you be able to turn the funds sitting in your accounts receivable into cash in your pockets, you will also reap the benefits that come with invoice factoring.
Here’s how payroll funding for temp staffing companies works:
- After your temporary employees have completed work at your customers’ workplaces for the week (or other designated pay period), prepare your invoices.
- Instead of sending the invoices to the customers, submit them to your factoring company for payroll financing.
- Your payroll factoring company will advance you – by direct deposit, wire transfers, or your choice of payment – up to xx% of the value of each invoice.
- The factoring company takes care of collecting the payment due from your customer. That separation of the collections process means uou don’t have to ask customers for more business at the same time you’re asking them to pay you.
- After your customer remits payment to your payroll funding company – in 30, 60, or even 90 days – you will receive the balance of the payment, minus a small factoring fee.
Payroll funding through factoring your invoices is not like a loan that you have to pay back to a bank or a high-interest online lender. You can use your advance to cover your employees’ payroll without the all-too-common payday stress. You can also use your advance to grow your company, whether it’s expanding your facilities, hiring more staff, improving your marketing – whatever you need to become more profitable.
Benefits of Staffing Agency Payroll Funding
When you partner with a top-tier payroll financing company like Interstate Capital, you are positioning your business for success. Through factoring, you can accrue many strategic benefits that will save you time, money, and worry.
- Speed up your cash flow and always cover your payroll
- Receive an advance of up to xx% of invoice value
- Get paid fast for work that has been completed without waiting for customers to pay
- Turn over collections chores to factoring professionals
- Protect yourself against business loss with free credit services
- Gain working capital without incurring debt
- Be able to work for larger customers with longer payment terms
- Improve your own credit score as you pay suppliers promptly
At Interstate Capital, you will be assigned a dedicated account manager with years of experience in working with staffing companies. This factoring expert will expedite your advances and ensure that you are on track to improving your cash flow fast. At Interstate, you can receive funds in your bank account on the same day you submit your latest invoices.
When you need a reliable payroll funding partner, the friendly staff at Interstate is ready to answer your questions and get you on the road to success.