Staffing Payroll Loans via Staffing Invoice Factoring

The best factoring companies in the U.S. offer competitive rates and fees, but that’s not the only reason staffing and temporary employment agencies should source staffing factoring payroll loans through My Factoring Brokers.

Why Temp Agencies Use Staffing Factoring Services

When staffing and temporary employment agencies factor customer invoices, they can get the money clients owe them on the same day an invoice is generated, rather than 30, 45 or even as long as 90 days later when the customer actually pays.

Invoice factoring is a cash flow financing solution that can be used by employment agencies as well as other types of businesses that invoice clients for payment.  It expedites cash flow by unlocking the money tied up in customer invoices, without waiting for customers to pay. Here’s how the process typically works:

What is Staffing Payroll Factoring (aka Staffing Payroll Loan)?

Rather than viewing factoring as a simple cash flow financing solution, some agencies view it as a tool for staffing payroll factoring, also known as staffing payroll loans. Payroll is one of the largest expenses for a staffing agency or temporary services firm and sometimes several pay periods may even occur before a client’s first invoice is due.  Using staffing factoring for payroll financing frees up the working capital in your agency’s customer invoices immediately, ensuring adequate cash reserves to meet payroll and related expenses.

Factoring as a Staffing Agency Cash Flow Solution

Factoring staffing invoices can free up the working capital an agency needs to meet payroll and expenses so that they can land new business or take on bigger client accounts more quickly.  Since staffing and temporary employment agencies often invest a considerable amount of resources in recruiting, hiring and placing candidates before a customer’s first invoice is even generated, this can be an ideal way to ensure that cash flow keeps pace with operational costs.

Agencies that factor invoices to expedite cash flow improve their ability to meet operational expenses and fund payroll with factoring payroll loans, but that’s not all. Agencies that factor can also use improved cash flow to negotiate discounts with their suppliers and extend generous payment terms to clients as a competitive advantage. This could be key for a growing agency, especially in their efforts to land large accounts.

Staffing Factoring Rates – Advances and Fees

Some companies that factor invoices differentiate between staffing factoring for general agency financing purposes and temp staffing payroll financing loans. This is often done in order to require an agency to factor monthly minimums or factor all customer invoices, even if it’s not in the agency’s best financial interest to do so.

We work with some of the best staffing factoring companies. These companies don’t differentiate between agency and payroll financing, and they leave the control over when to factor, and which invoices to factor, up to the staffing agency. They want their clients to be free to do what they feel is in the best interest of their agency.

Having no factoring minimums are not the only reason these companies rank among the best for payroll loans and staffing factoring services. Their fees are competitive and advance rates are among the highest in the industry, with programs that have:

• Low factoring rates – as low as 1-2%
• High staffing factoring and payroll loan advances – up to 98%
• No monthly minimums – factor only when you choose
• Benefits of non-recourse factoring services without paying more
• No long term contracts
• No hidden fees or add-on fees that jack-up the real cost of factoring
• No application or due diligence fees
• Free credit checks on your customers

In fact, we believe that when you compare the terms of different staffing factoring companies, you’ll find that the programs we can connect you with stack up favorably to most – if not all. In addition, the staffing factoring companies we work with deliver these services with a consistently high level of customer service through dedicated account managers who understand your agency’s needs and preferences.

Grow from where you are today to where you want to be tomorrow.

Even if you are already factoring, we would be happy to provide you with a free, no-obligation quote for staffing factoring and staffing payroll loans so that you can be sure you have the program that is best suited to help grow your agency.

Get a free, no-obligation quote for staffing factoring or staffing payroll funding solutions: