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Payroll Funding for Staffing Agencies and Small Businesses

Fast and Simple Funding for Payroll

Payroll funding is an alternative funding option in which a company sells its unpaid receivables in order to receive payment sooner- hours instead of months. Many staffing companies rely on payroll funding to keep their employees paid on time, every time.

Slow Paying Clients? We’ll Help You Get Paid Faster!

Funding payroll can be challenging, especially for growing staffing firms. Whether your agency needs a cash flow boost to hire new talent, extend payment terms to clients or increase marketing efforts, count on factoring companies for staffing to provide a steady source of working capital.

Factor Finders works to understand your company’s specific objectives and matches your business with a factoring program that’s best tailored to your payroll funding needs. The initial application and funding process can be complete in as soon as 3 days. After you’ve been approved, your temporary staffing firm can take advantage of 24 hour funding for payroll.

What is Payroll Funding?

You might be wondering, “What is Payroll Financing?” Basically, rather than waiting for clients to pay you, companies that specialize in financing for payroll will purchase your unpaid accounts receivable and advance your company the cash–instantly. This process is also known as payroll factoring. It’s as simple as that!

How Does Payroll Funding Work?

  • Service your customers and submit invoices to the factoring company
  • Your business receives a cash advance of up to 90% of the amount of the invoices
  • Use the advance to fund your staffing agency or business as you see fit
  • Your customer submits payment to the factor
  • Once the invoice is paid, the remaining balance is returned to you, minus a small factoring fee

Financing is available within 24 hours of submitting invoices, so you’ll always have the money for payroll and other expenses. Unlike bank lending, funding payroll with a factoring company creates zero debt. You’ll never have to worry about paying back any loans and incurring high-interest rates.

As a business owner, it’s your job to pay your employees in order to grow your business and keep it successful. Whether you have 10 or 10,000 employees, Factor Finders can provide the optimal solution to your cash flow needs.

Payroll funding can be used to pay employee wages, worker’s compensation, benefits and other payroll requirements. While you have the ability to pay employees, you can also use the extra working capital for other business expenses, take on new clients, pay vendors, or whatever else you need to do to grow your company.

The Benefits of Invoice Factoring to Fund Payroll

The benefits of using this financing method reach beyond positive cash flow. There’s a reason that payroll financing is quickly becoming the preferred method of funding for staffing agencies and small business owners.

No minimum volume requirements
Payroll financing is available for startups
The amount of available working capital grows with your business
High advances up to 90%
No long-term contracts
Back office support for staffing companies including payroll processing, billing, taxes, etc.

The Importance of Payroll Funding for Staffing

Payroll funding plays a crucial role in the success of staffing agencies, serving as a dependable source of financial support. Without consistent funding, these agencies may struggle to meet their payroll obligations, which can have detrimental effects on their operations. By partnering with a reliable payroll funding provider, staffing agencies gain the confidence of knowing that their payroll will be met without fail.

One of the primary advantages of payroll funding is that it grants staffing agencies the financial freedom to effectively market their services, fulfill client orders, and ultimately achieve their goals. Cash flow is a vital aspect of running a staffing agency, and the ability to access sufficient funds when needed allows agency owners to focus on their core activities instead of worrying about financial constraints.

Many staffing agencies face the challenge of dealing with customer payment terms ranging from net-15 to net-60, and sometimes even net-90 days. These delayed payment cycles can place an immense burden on agency owners, causing financial stress and hindering their ability to operate smoothly. By leveraging custom payroll funding solutions, staffing agencies can acquire the necessary funds precisely when they need them. This eliminates the stress of waiting for customer payments and empowers agency owners to concentrate on crucial aspects like talent recruitment and building a stronger, more profitable staffing agency.

Overall, the importance of payroll funding for staffing agencies cannot be overstated. It provides the financial stability needed to navigate the unpredictable demands of the industry, enabling agencies to meet their payroll obligations on time and in full. By securing a dependable source of funding, staffing agencies can confidently drive their business forward, overcome financial obstacles, and focus on achieving long-term success.

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What to Expect with a Payroll Funding Company

Every company is assigned a personal account manager to handle all account management duties including customer credit approvals, collections and billing so you can get back to running your staffing company.

Instead of fretting about cash flow, you can focus on growing your business. In addition, by working with a factoring company you’ll have the ability to extend longer payment terms to clients and grow your operation.

“How do I get Approved for Payroll Funding?”

Approval is easy and less-than-perfect credit is acceptable.

If your company has been denied for bank financing, you’ll likely be approved for payroll funding. Why? Credit checks are conducted on your customers – not your company or personal credit history.

If your customers have a decent credit history, you will be approved to finance your payroll by a factoring company. This is a fast working capital option for small business payroll funding and for startups to pay employees that don’t want to take on more debt.

The following is NOT required for approval:

  • Good credit rating
  • Personal guaranties
  • Profitable operating history
  • Long operating history

Payroll Financing for Small Business and Staffing Companies

Do you own a staffing agency and need funding? Call us to learn more about our custom staffing factoring and back-office support services.

About Factor Finders

Factor Finders is committed to helping your business access the funding it needs in order to grow. We take the time to listen to what you’re looking for and connect you with one of our many partners in the invoice factoring industry.

We’ve spent years cultivating relationships with the best funding companies out there so when you’re not sure which company is the best fit for your business, we do.

Save yourself the time and effort searching for the perfect payroll financing company for your staffing agency or business and let us do the work for you. This way, you can focus on your business and we can do what we do best.

Get Started Now

Secure the funds you need today.