How Do Startups Get Payroll Financing?
- How Do Startups Get Payroll Financing?
- 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 Financing Helps Temporary Staffing Companies Grow and Thrive
- Funding for Temp Staffing Made Simple
- Ready for the owner-employees of Bankers Factoring to finance payroll for your 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 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.
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?
Payroll Funding for Staffing Companies
Payroll funding is the perfect financing solution for staffing companies of all stages, whether you are a startup or have been an established agency for years. Both startup staffing firms and long-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.
What is Payroll Funding?
Payroll funding, also referred to as invoice factoring, is very straightforward and eliminates the wait for payment from customers. Invoice factoring, also called 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 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.
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
- 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 process
- 24/7 Online reporting portal
- Freedom to extend customer payment terms
- Ability to hire more staff and take on new accounts
- We take the credit risk with 30-90 day selling terms
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 clients prosper when leveraging their working capital secured through Bankers Factoring.
Payroll Financing Helps Temporary Staffing Companies Grow and Thrive
Payroll financing 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.
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 business owners to focus on growing their businesses.
Bankers Factoring Payroll Funding Advantages Include:
- Up to 93% cash advance within 24 hours of approval
- We take on the credit risk and provide bad debt protection
- Flexible contract terms
- No hidden fees
- Tiered pricing for startups
- Bad credit OK
- 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:
- And many more
Read more about Bankers Factoring and What Makes the Best Staffing Factoring Company.