FAQs

Staffing Factoring

Frequently Asked Questions / FAQs

Frequently asked questions

The StaffingFactoring.com brand focuses on payroll funding, also referred to as payroll factoring, tailored specifically for temporary staffing agencies. This service enables these agencies to access immediate cash flow, allowing them to pay their workers promptly and manage their operational expenses effectively.

A payroll funding facility relies on your accounts receivable. Essentially, you sell your invoices to a factoring company monthly, which typically advances up to 95% of the invoice amount. The remaining 5% is returned to you once the invoice is collected, minus the factoring fee. This process enables the staffing agency to maintain a steady flow of capital for payroll and other general expenses.

Yes, we work with temp staffing agencies of all sizes, including startups. Our tailored solutions are designed to help startup agencies manage their payroll efficiently and focus on growth. By partnering with the right funding partner, you can access the necessary resources to thrive in a competitive market.

Yes, the benefits of non-recourse financing include reduced financial risk, as agencies are protected from losses if their clients default on payments. Additionally, a steady flow of capital improves cash flow, allowing staffing agencies to meet payroll obligations promptly and pursue growth opportunities.

The StaffingFactoring.com brand serves as a staffing factoring and payroll funding platform for our parent company, as well as its subsidiaries, divisions, affiliates, and partners. This organizational structure enables us to offer a diverse range of staffing factoring and payroll funding solutions specifically designed to meet the unique needs of temporary staffing agencies. Our extensive network provides tailored solutions that effectively support the cash flow requirements of staffing agencies.

Yes, we work with temporary staffing agencies throughout North America, including most U.S. states and Canadian provinces. Our platform enables us to efficiently meet the varied needs of our clients while ensuring that their payroll funding requirements are consistently fulfilled.

Each situation varies. Typically, the process from application to funding takes 2 to 5 business days, depending on how quickly we can obtain the application and paperwork and verify invoices. Funding is generally completed within 24 to 48 hours after approval. For larger or more complex transactions, the overall process may take longer. Our goal is to keep our clients satisfied and to fund deals as quickly as possible.

Yes, our invoice factoring and payroll funding services are perfect for staffing agencies that operate within a Vendor Management System (VMS) or Managed Service Provider (MSP) framework. These are specialized services, and not all factoring companies have a clear understanding of them. We have a specialized payroll funding team that designs solutions specifically for VMS and MSP temporary staffing agencies.

High-volume factoring, also known as payroll funding, is particularly suited for larger temp agencies that need monthly advances in the millions to cover payroll or seize investment opportunities. Partnering with a factoring company that can accommodate these high-volume needs is crucial for effectively managing cash flow and ensuring smooth operations without cash flow constraints.

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