Our staffing solutions help retain your valuable employees.
Staffing factoring is the solution for everything
It’s not difficult to find a person best suited for the job, but to keep them in the company at your payroll; well, that is entirely different. You may be issuing checks bi-weekly, or say twice a month, but then what if the payment comes as late as 90 days? How is that going to be aligned with your invoice terms?
There will be times in the month when the cash going out for payroll would exceed the cash coming in. Waiting for payment on your invoices is not an option, and all that comes to your mind is to approach the bank. But we all know that a bank wouldn’t be a good option either, because it takes months to process before you get hold of the funds and that too when we assume that you are an established business with a great credit score.
The easy way out and a much better alternative in today’s world would be to look up to factoring service providers, ‘staffing factoring’ to be specific. At factoring compass, we are known for several years for offering factoring invoices to provide staffing solutions. We must keep those workers with our payroll funding.
What does staffing factoring refer to?
Staffing factoring, often termed as payroll factoring, is a financial tool provided by factoring agencies like us as staffing solutions to help their operations run smoothly. It is the service that converts the outstanding invoices into immediate working capital. It is different from a bank loan, as you don’t have to make any regular payments with interest.
All you have to do is sell your unpaid invoices to a factor, i.e., a company providing the factoring services. The factoring company assumes it to be its business to recover the payment due for the invoice. Instead of sending the payment to your invoice to you, the customers send it directly to the company providing the factoring services to you.
Thousands of companies across the U.S and Canada that require staffing solutions utilize ‘staffing factoring’ to ensure that they are capable of paying their employees on time. This regulates a smooth cash flow irrespective of the time taken by their customers.
The temporary staffing companies do this by submitting invoices to the factoring company at the beginning of a payroll week, mentioning the number of hours their employees have worked. The company that is offering the ‘staffing factoring’ then carries out the necessary verifications and finally advances funds based on the receivables.
How does staffing factoring work?
Given below are the steps illustrating how you can attain staffing solutions from the Factoring Compass:
- Fulfill the requirement: You have to abide by the agreed-upon staffing needs laid out as per the agreement with your customer, for starters.
- Generate an invoice: You have to generate an invoice for the total cost of the service provided and send copies to your customer and us.
- Verification and payment: Our experts will verify the invoice’s authenticity and then wire a large percentage of the invoice amount to your account, holding the remaining money till the time the customer company pays the invoice amount.
- Remaining payment: Once your customer pays the full invoice amount to us, our team would transfer the remaining invoice amount to you after deducting the factoring services fee.
Advantages of staffing factoring
- Getting quick payment: Once you’ve been approved for any factoring services, you will receive the funds within a day from when the invoice was assigned.
- Predictable cash flow: Due to the high unpredictability of the customers’ payments in the staffing companies, the cash flow cycles tend to be quite haphazard. By factoring in all your invoices, you can now have an exact knowledge of how much money you are getting and when.
- Focus on growing your business: You can use these factoring services to outsource your A/R processes completely. This would save your time and resources, which you could now use to grow your business.
- Speed up cash flow: With the help of staffing factoring, you can now convert your expedited cash flow into your business’s growth and use it to your competitive enhancement.
Why choose our staffing factoring services?
24/7 online reports
We are always at your service and have friendly customer service and a well acquainted and knowledgeable staff who would guide you through the process of staffing factoring.
We ensure that you don’t have to keep worrying about the finances to focus on growing your business. We work towards bringing you lucrative deals while not burdening your pocket. Therefore, our services’ fees are reasonable.
Cash when needed
Which businesses need staffing factoring
As a result of a wide variety of positions being recruited for and many industries being served, it isn’t possible to always predict when an agency’s invoices can be paid. Staffing factoring helps staffing agencies in being capable of managing their cash flow. In case you are a staffing company whose monthly outstanding invoices are around $5,000 to $50,000, factoring may be the solution for you.
Staffing factoring is commonly used by the following industries and businesses:
- General staffing agencies
- Information technology staffing agencies
- Temporary staffing agencies
- Healthcare staffing firms
- Human resources (HR) consulting firms
- Clerical staffing
- Contingency based agencies
Smoothen your cash flow in an instant with our staffing factoring services. Reach out to us today to take your staffing business to the next level.