Staffing Factoring - Payroll Funding for Your Company
Kim knows the value of a good relationship...
When Kim Decker formed Metropolitan Services, she knew she would need a solid partner who understood the unique needs of a start-up temporary staffing firm. “In the staffing business, it’s all about relationships. Delivering what you promise when you promise it is an absolute requirement for success in the temp staffing business.”
“When we approached Gateway, they took the time to listen and understand our growth plans. They offered practical advice regarding credit and receivables management techniques which we use every day. It was clear from the beginning that they were interested in starting a relationship. Something I can truly appreciate.”
...So do we.
What is Staffing Factoring?
Temporary staffing companies’ main dilemma is finding ways to cover payroll funding while waiting for clients to pay their invoices. For staffing agencies that typically give their customers 30 to 90-day payment terms payroll funding is frequently a big struggle. Unless the staffing agency is well-established banks won’t usually help with cash flow financing. That’s when staffing factoring usually emerges as the best cash flow financing option.
Staffing Factoring is the sale of outstanding staffing invoices by a staffing agency to a financial institution, known as a factor, at a discount. The factor buys the invoice, advances the staffing company funds, and then waits until the debt is paid.
Benefits that Staffing Factoring Offers
Staffing factoring allows organizations to grow their businesses when they can’t or don’t want to get loans or lines of credit from a bank. Invoice factoring is the easiest path to accessing reliable working capital without acquiring debt.
Here are a few of the many benefits that invoice factoring offers staffing companies:
- Invoice Factoring is highly accessible. Easy to apply and qualify.
- Available to firms at any growth stage from small businesses to established enterprises.
- The credit rating and background of your agency do not matter. The factor mainly cares about your customers’ creditworthiness, not yours.
- It’s a flexible financial tool. You can sell the invoices you want whenever you need additional working capital.
- There is no limitation to the use of invoice factoring proceeds but most staffing managers use them for payroll funding.
How Does Staffing Factoring Work?
Staffing invoice factoring is an easy way to get temporary working capital to support your operations.
This is how the process works:
- Your deliver your staffing services and then invoice your customers.
- You submit the invoices together with the timesheets to our staffing factoring company.
- We advance you up to 90% of the invoice value within 24 hours (based on the terms of your contract).
- You use the money for payroll funding or any other ongoing expenses.
- The factor waits for the payment to arrive.
- When the invoice is paid you get the balance minus our small factoring fees.
- You repeat the process as long as it is needed.
Who Uses Staffing Factoring?
Staffing factoring is a very common tool used by staffing companies to access capital. The most common industries that use this flexible funding instrument are the following:
- Security guard staffing agencies
- Healthcare/ Nurses / Medical staffing
- IT staffing
- Warehouses & Office staffing
- Customer service
- Employment agencies
- Trucking, Freight & Logistics
- Hospitality staffing agencies
- And many other staffing businesses that arrange the temporary placement of staff
How to Qualify for Staffing Factoring?
Staffing factoring is fast, reliable, and accessible. As long as you have unpaid commercial invoices, our staffing factoring company can turn those invoices into cash flow. It is that easy.
Our staffing factoring company’s main qualification requirements are the following:
- Your clients have to be operating in the USA.
- Your customers have good credit and financial background.
- Payments are received between 30 and 90 days from the invoice date.
How to Apply for a Staffing Factoring Account?
Please submit a factoring quote request or call 1-855-424-2955 if you want to apply.
We have a simple invoice factoring application that can be completed online in about 10 minutes. In most cases, the only documents we request are an A/R Aging, an A/P aging report, and a sample invoice. Once we receive your application we can evaluate it and give you a proposal in an hour or less.
About Our Staffing Factoring Company
The temporary staffing industry’s most common struggle is having the adequate cash flow to cover payroll. While customers usually take more than 30 days to pay, the staffing agencies’ owners and managers have to find ways to cover payroll funding every two weeks or less.
Our staffing factoring company can help your staffing business turn its outstanding invoices into cash flow almost immediately. You can use the factoring proceeds to grow your business or for anything else you need including payroll funding and paying for operational expenses.
We offer:
- Staffing factoring programs customized to meet your special needs.
- Low monthly fees and high advance rates.
- Cash flow advances in 24 hours or less.
- Flexible contract lengths.
- Credit lines up to 5 million.
- Relationship managers specialized in serving staffing companies.
- Recourse and non-recourse invoice factoring agreements.
We protect your staffing company’s reputation
When you work in a sector as focused on relationships as staffing, your firm’s reputation is extremely important. Our staffing factoring process is designed to deliver timely cash flow while ensuring protecting your reputation.
Check out this resource to find out more details about our highly confidential invoice factoring services.
Call our toll-free phone 1-855-424-2955, submit a factoring quote request, or email us now to get more information about staffing factoring and our payroll funding programs. For almost two decades our factoring company has served hundreds of staffing agencies maintain consistent cash flow.
Payroll Funding With Gateway Commercial Finance
Payroll funding is particularly valuable to small businesses in need of temporary working capital.
At Gateway, we provide payroll funding solutions through our flexible invoice factoring program. We can help your staffing agency maintain healthy cash flow so you can timely pay your employees and contractors when needed.
Interested in staffing factoring and/or payroll funding? Please contact us now. Give us a call or submit a factoring quote request. Our managing director will get in touch with you right away.