Payroll Funding vs. Factoring

It is normal for staffing firms to have cash flow shortages during times of growth as they deal with different pay cycles. In an effort to fund their growth many staffing firms look for alternative financing. The two most frequently used alternatives are Payroll Funding and Factoring. Although Payroll Funding is a good option for some staffing firms, Factoring is much more flexible.

For Example:

With Payroll Funding, only the payroll portion of the invoice is funded. Whereas with Factoring, the entire invoice is funded and the staffing firm may use the funds for any purpose including payroll, marketing, expanding, etc... Similarly, with Payroll Funding the staffing firm must submit all time cards while the funding Company takes over invoices, payroll and tax processing. With Factoring, the Staffing firm has total control over which invoices they submit and maintains management of payroll, insurance, etc… if they do not want back office help.

Additional Benefits of Factoring include:

Stimulating Growth:

• Provides immediate access to working capital
• Shifts manpower from collection to marketing for growth
• Meets payroll efficiently and consistently

Reducing Expenses:

• Eliminates bad debt with credit guarantees
• Reduces collection and administrative expenses

Improving Finances:

• Meets regular payroll obligations
• Gets payroll taxes current
• Reaches a higher quality customer base

If you would like to know if Factoring will help your Temporary Staffing Firm please visit http://universalfundingmain.com/defaultstaffing.html

Or call 1-800-901-2418 for immediate assistance.