As is the case with most invoices, the client then has 30 to 90 days to pay. The staffing agency pays the employee’s salary and then bills the client with a typical invoice. When a staffing agency leases personnel to a business, the employee’s employment agreement is with the staffing agency, who will in turn bill the client the agreed upon bill rate. Payroll factoring, also known as staffing factoring, is the funding for a loan backed by a payroll invoice. This allows you to offer generous payment terms to customers and to obtain cash and working capital to increase growth and profits.In order to understand the differences between payroll funding and payroll factoring, let’s begin to break down what payroll factoring actually means. Accounts Receivable Factoring for Staffing is Your Means to a Powerful Business Edge.Ī staffing factoring company offers non-loan business financing. It is easy to get approval for, you get consistent cash flow, you don’t acquire bad credit, and you can focus on growing your business this makes factoring one of the best staffing financing options available. Once all the invoice payments have been received, the factor pays back the remaining balance to your company – minus a small fee known as the factoring fee. Your business is paid upfront for the open invoices, and the factor does all the work of collecting the money from your customers. It’s a financial transaction between a factoring company and its client whereby a business sells its unpaid invoices to the factor in exchange for a percentage of the invoice value. Factoring for staffing agencies is not the same as lending and is not classified as a loan. Invoice factoring is a common service used by staffing firms to generate positive cash flow. How Does Invoice Factoring For Staffing Companies Work? You don’t have to start over with a new person each time you call. Personalized Service – you have one dedicated person and his or her assistant who handles your account. Fork Lift Operators – Loaders /Unloaders.Assembly – Warehouse – Quality Control – Quality Assurance.Doctor’s Office Assistants – Medical Secretaries. Admin Assistants – Executive – Legal Secretaries.Full Charge Bookkeepers – Accounting Clerks.Mid Management – Administrative – Technical.Healthcare – PTs – RNs – CNAs – OTs – MDs.We Provide Factoring Services to the Following Staffing Industries: We are seasoned professionals with decades of industry experience. The use of our back-office support for collections and mailing out of your invoices can sometimes offset the factoring fees or decrease internal overhead-related costs. Our credit analysis and collection services have helped many of our clients gain a competitive edge in their industry. Charter Capital has a long track record of providing invoice factoring services to staffing companies that make these obligations easier to handle. As such, we understand that temporary staffing service companies face constant cash flow challenges due to employee payroll obligations and other important factors. Charter Capital is an experienced staffing factoring company.
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