Payroll Funding is the lifeblood of a Temporary Staffing Agency.
When your temp firm sends out one of your skilled workers to a company, you then invoice that company for your worker’s time. Depending on the size, strength and operational functionality of that company, they may pay that invoice to you in 30, 60 or 90 days.
The challenge arises when you need to pay your employees on a weekly or bi-weekly basis. This creates a cash-flow gap for your firm. You are in turn acting as a financing source for the company and are forced to cover your payroll until you are reimbursed from the company you are supplying workers to when the invoice is paid.
A sophisticated Payroll Funding program like AGR’s, enables you to utilize the invoices that you send out and receive an advance of up to 90% of the face amount of the invoice. This frees up your cash to make payroll or to cover other expenses that are needed.
Many Temp Firms incorrectly view utilizing Payroll Funding programs as a weakness. To those we pose these questions: If one of your clients asked you to triple the amount of workers you supply to them next week, would you have the capital to support that cash-flow gap for the payroll? Would you tell the company that you cannot supply the workers and turn away the business?
Payroll Funding is a great mechanism for the growth of a staffing firm. Whether you are a startup staffing firm, a well-established staffing firm that wants to free up cash, or a staffing firm experiencing rapid growth, Payroll Funding is the answer for you.
Give us a call or fill out our contact form below and we will get back to you very quickly to discuss our Payroll Funding programs and see which one makes sense for you and your firm.