A little discussed employment trend has occurred the past five years: skyrocketing growth of temp workers. According to some estimates, temp agencies are hiring at a rate of 10 to 1 when compared to standard full-time hires. As a result, staffing agencies have boomed and in many cases are unable to keep pace with the rate of growth.
Staffing factoring is a way fast-growing companies can get the cash it needs right away to cover large, new hire payrolls. If a client needs to hire in bulk for a project, for instance, a staffing company needs to be able to fulfill that order right away or risk losing it. With new staffing agencies popping up all the time, competition is tough.
Consider Payroll Funding because Job Fulfillment Needs Won’t Wait
Staffing financing or payroll funding lets temp agencies get the money they needs right away rather than having to wait and wait for a bank loan. With this high level of growth in the market only likely to continue, having to wait for financing may mean losing the deal. And because staffing agencies often don’t receive what’s owed to them even after they’ve provided the staffing services, cash received can cover any cash flow issues.
For those agencies that fill specialty staffing needs, such as medical or IT contracting, payroll expenses can be quite high and waiting to receive payment from a client may not be an option. In this way, payroll funding ensures workers are paid but also that your staffing agencies stays on track focused on hiring the most sought-after people they can find.
Consider Years in Business, Line of Credit When Reviewing Payroll Funding Companies
The boom in temporary agencies has led to a boom in invoice factoring companies themselves who are looking to provide
With so many new invoice factoring companies popping up all the time, it is always a good idea to research and study the factoring company thoroughly before choosing which company to partner with. Consider number of years in business, credit line available, reputation, and familiarity with the staffing and payroll factoring niche to name a few. Deciding to work with one of the payroll funding companies that has more than 25 years of in the business with a credit limit of $100M or more is a good place to start.