Staffing Company Funding from a Payroll Funding Company
How Do Startups Get Payroll Financing? Invoice Factoring Company for Payroll Funding
Table of contents
- Staffing Company Funding from a Payroll Funding Company
- How Do Startups Get Payroll Financing? Invoice Factoring Company for Payroll Funding
- How does Payroll Funding Work?
- Payroll Funding for Staffing Companies
- What is Payroll Funding?
- How Does Payroll Funding Work?
- Challenges of Starting a Temp Staffing Agency
- Payroll Funding Benefits with Bankers Factoring
- Payroll Funding Helps Temporary Staffing Companies Grow and Thrive
- Funding for Temp Staffing Made Simple
- Staffing firms with customers in the following industry are great for payroll funding:
- Ready for the owner-employees of Bankers Factoring to finance payroll for your start-up staffing agency? Call 866-598-4295 or go to Bankers-Factoring-Application.
How does Payroll Funding Work?
Of all startups, only 60% survive through year three, with many failing because of poor cash flow management and limited working capital. Imagine then your new staffing agency that just acquired its first customer, but you could not consider the gaps in cash flow. Startup business owners risk losing their business when they cannot pay employees. Moreover, payroll processing is hard enough in your staffing business without funding solutions for your outstanding invoices and future revenue growth.
Startup staffing companies start in the hole cash flow-wise. Is your staffing startup struggling to maintain the cash flow necessary to recruit and hire more staff? Due to insufficient funds or working capital, are you passing up larger accounts with their 60–90-day terms? Could your staffing agency benefit from additional cash flow?
We understand staffing agencies’ unique needs and have a light touch with your staffing company’s customers. We have deep experience when we finance staffing agencies.
Payroll Funding for Staffing Companies
Payroll funding is the go-to financing solution for staffing companies, whether you are a startup or a fast-growing established agency. Startup staffing firms and well-established agencies use Bankers Factoring to access working capital tied up in unpaid invoices.
Business owners should not feel trapped and stressed because they cannot pay their staff on time. With the tight labor market and corporate employee retention struggles, businesses cannot afford to miss payroll.
Are you a temp staffing company? Please read how to choose the best temp agency funding source for our article on financing temporary staffing agencies.
What is Payroll Funding?
Payroll financing, also referred to as invoice factoring or staffing factoring, is very straightforward and eliminates the wait for payment from customers. Invoice factoring, also called invoice financing, accounts receivable (A/R) factoring or simply factoring.
Payroll funding with Bankers Factoring provides additional benefits for our clients. Our non-recourse factoring removes the credit risk and burden of customer default. To learn more about non-recourse payroll funding, visit our previous article, Non-recourse Invoice Factoring for Startups.
How Does Payroll Funding Work?
First, your staffing firm provides staff to your customers and invoices on your usual terms. Instead of waiting 30 to 60 days for receivables, your staffing firm sells the invoice to Bankers Factoring. You receive an advance of up to 92% of the receivable value within 24 hours by selling your receivables.
Your staffing company sells invoices to Bankers Factoring, and we provide funding in two installments. First, the initial cash advance and second, the rebate, once your customer (account debtor) pays, are based upon their terms. We pay the remaining balance on the rebate, less our factoring fee.
To learn more about how payroll funding works, visit our Payroll Funding Guide.
Challenges of Starting a Temp Staffing Agency
Any experienced business owner will tell you that the initial startup period is the biggest challenge and hurdle for new businesses. Many start-ups fail within the first few years, and a lack of working capital is why businesses close their doors.
New temporary worker staffing agency owners begin with great enthusiasm but easily fall victim to mistakes, including inadequate working capital, not accounting for lengthy waits on invoice payments, and lacking a financial management plan to cover emergency costs.
You can also read how to start and finance a staffing agency.
The staffing industry can be highly lucrative for small businesses, but competition is highly competitive and saturated with niche agencies. A consistent source of working capital is essential to cover startup costs (expected and unexpected). If you are launching a staffing company with minimal cash, it is crucial to have a financing plan.
Bankers Factoring helps startup staffing agencies develop a customized plan for their cash flow needs. To learn more, visit our previous article, Payroll Factoring for Staffing Firms.
Payroll Funding Benefits with Bankers Factoring
- Steady funds for payroll when other loan options are not available.
- Gives you a financial cushion.
- Flexible: your factoring line grows as your business grows.
- We take on the credit risk.
- A/R Management: we provide back-office support for the receivable financing process.
- 24/7 Online reporting portal.
- Freedom to extend customer payment terms.
- Special programs for medical and nurse staffing agencies.
- Ability to hire more staff and take on new accounts.
- We take the credit risk with 30-90 day selling terms.
You can also read our article on recruitment agency financing.
As employee owners, we understand that starting a staffing agency for temporary or direct hire services is financially stressful. We partner with startups, entrepreneurs, and small businesses to build robust financial management and cash flow solutions. Our staffing agency clients prosper when leveraging their working capital secured through Bankers Factoring.
Payroll Funding Helps Temporary Staffing Companies Grow and Thrive
Payroll funding for staffing startups is easy, quick, and risk-free, contributing to its popularity in the industry. Unlike a bank loan, it creates no additional debt on your balance, does not require collateral or the time expense of a lengthy application process, and accepts all companies regardless of size, experience, or credit history!
The best part of payroll funding is we do not evaluate the business owner’s credit. Qualifying for payroll funding depends on the creditworthiness of your customer or the account debtor. To learn more about qualifying for payroll funding, visit our previous article, The Due Diligence Process in Invoice Factoring.
Payroll funding for startup temp staffing companies is the best way to get cash for your invoices immediately, freeing up your company’s cash flow so you can focus on moving your business forward. Staffing agencies can utilize their payroll funding for payroll and acquiring new customers.
Funding for Temp Staffing Made Simple
Our funding process is human; our talented employee-owners will take personal care to customize a factoring plan that best matches your needs and work to create a plan for you that will move your company forward and help it achieve its goals and financing needs.
You will always have a steady flow of working capital to keep your business afloat if times get tough by funding staffing payroll with Bankers Factoring. We provide back-office support and manage the A/R process, enabling the business owners of staffing companies to focus on growing their businesses.
Bankers Factoring Payroll Financing Advantages Include:
- Up to 93% cash advance within 24 hours of approval of your invoice’s face value
- We take on the credit risk and provide bad debt protection
- Flexible contract terms
- Unlimited funding based on your open accounts receivable
- No hidden fees or additional fees
- Special programs for federal government staffing financing
- Options when turndowned for a small business loan
- Credit and collection services for staffing companies
- Tiered pricing for startups financing option
- Not balance sheet driven like bank small business loans-Bruised credit is OK
- Recruiting firms and temporary employees financing by factoring receivables
- First-time accounts get processed within days
- Industry low rates start at 0.95% for 30 days
- No application fees
All staffing companies can utilize staffing agency factoring regardless of size, industry, or experience.
Staffing firms with customers in the following industry are great for payroll funding:
Read more about Bankers Factoring and What Makes the Best Staffing Factoring Company.
We know you have many choices when it comes to payroll funding providers, and we want to be the payroll funding solution for your staffing company. With award-winning service, high advance rates, and easy-to-understand factoring fees, we hope to welcome you to the Bankers Factoring family by using our factoring company staffing funding services to meet payroll and payroll taxes. Let’s get started today by meeting your growing business needs as your staffing-centric factoring company.