It is common for staffing firms to face cash challenges during times of growth. Dealing with many different pay cycles, meeting payroll can become difficult. Many staffing firms will turn to payroll funding or factoring to get them though their time of need. While payroll funding is a good option for some staffing firms, factoring offers more flexibility.

At a glance, here are some of the differences between Payroll Funding and Factoring a staffing company:

PAYROLL FUNDING:

Funding only the payroll portion of the invoice

Long-term contracts

Usually the staffing firm must submit all time cards

No Credit guarantee

Funding Company takes over invoices payroll and tax processing

FACTORING WITH US:

Funding of entire invoice. The staffing firm may use the funds for any purpose, payroll, marketing, expanding, etc.

No long-term contracts required

Staffing firm has total control over which invoices they submit to us.

Credit guarantee, in factored invoices

Will fund into staffing firm's payroll account

Staffing firm manages payroll, insurance, etc

The benefits of factoring with us really boil down to adding profit to your bottom line. Before you factor, make sure you can take advantage of the features and leverage them into value:

TAKE ON ADDITIONAL BUSINESS

Most of our staffing clients can do more business if they have better cash flow. Some real examples are:

Immediate access to your working capital

Shifting manpower from collection to marketing for growth

Meeting payroll efficiently and consistently

REDUCE EXPENSES

Many of our clients in the staffing industry actually reduce expenses by outsourcing credit and administration to us, and by leveraging their healthy cash position. The most common ways include:

Eliminating bad debt with our credit guarantee

Reducing collection and administrative expenses

IMPROVE YOUR FINANCIAL CONDITION

Exchanging invoices for cash enables some staffing businesses to "get current" or reduce strains caused by tight cash flow. It also improves their own credit rating which is critical to do business with larger customers. Here are some examples we frequently see:

Meeting regular payroll obligations

Bringing payroll taxes current

Reaching a higher quality customer base

How can YOUR Temporary Staffing company benefit from Factoring?

Every staffing company has a unique situation. Before signing up to factor, it's important to estimate how our services can increase your business, reduce your expenses, and improve your financial situation.