Category Archives: Service

How TemPay can help with your company’s payroll factoring

Posted on by

Payroll factors such as TemPay provide a service in which staffing agencies sell their accounts receivable invoices for a fee to obtain immediate cash. Your clients then pay the factor.

This type of staffing agency finance allows you to manage your agency’s cash flow in an industry where employees and vendors are often paid weekly while customers take 30, 45 or even 60 days to pay.

Payroll factoring is typically offered in two ways:

  • Money only. This funding solution does not provide administrative support.
  • Full service. With this option, the factor not only provides you with payroll funding but also handles your staffing agency’s payroll, invoices, taxes and collections.

Both forms provides numerous benefits, as they allow you to quickly receive the working capital you need to operate and grow your business without the hassles of the lengthy business or financial reviews of traditional financing.

Payroll factoring is also typically a more flexible form of staffing agency finance than bank funding, and factors are more likely to consider special requests, such as an overadvance.

TemPay provides both money-only and full-service payroll factoring.

We advance 90 percent or more of your invoice total, among the highest advance rates in the industry. We also offer TemPay Complete Solutions Software®, customized comprehensive software to help staffing firms perform all major front- and back-office functions and tasks.

For information on TemPay and its payroll factoring services, visit www.tempay.com or call (866) 683-6729.

What Industries Benefit From Payroll Factoring?

Posted on by

Staffing firms of all sizes and in all stages of their life cycle can receive payroll factoring, whether you are starting your own staffing agency or are established in the field and regardless of your number of clients.

Funding is available for firms in any industry, including:

  • Light industrial
  • Administrative
  • Information technology
  • Construction
  • Health care
  • Legal
  • Clerical

For example, 360° Staffing specializes in light industrial, office support and hospitality with 24-hour service and thousands of employees around the globe.

Payroll factoring has enabled CEO Carlos Sanchez to focus on growing the business, while TemPay takes care of back-office functions such as filing and paying his payroll taxes, invoicing his customers and collecting from delinquent accounts.

Many firms also provide factoring to companies outside the staffing industry, as well.

For information on TemPay and our payroll factoring services, contact www.tempay.com or (866) 683-6729.

What is an Accounts Receivable Factoring Company?

Posted on by

When searching for staffing agency finance, you have probably run across accounts receivable factoring, a type of funding in which you sell your accounts receivable to the factoring company for a cash advance. Your clients then pay the factor directly.

 

Firms of all sizes and in all stages of their life cycle can receive accounts receivable factoring, whether you are just starting a temp agency or established in the field, and whether you have five clients or 50.

 

Funding is available for firms in any staffing industry, whether it is light industrial, administrative, IT, construction, health care, legal or clerical. Many firms also provide factoring to companies outside the staffing industry, as well.

 

Factoring aids your staffing firm by providing quick and easy cash to fund your business in an industry in which companies often suffer from cash flow gaps.

 

There are typically eight easy steps to receive accounts receivable factoring.

  1. Contact your factor’s sales department.
  2. Your sales representative will collect information about your staffing business.
  3. Complete a credit application form and provide client information.
  4. Your factor performs a credit check on you and your business.
  5. Your factor approves your credit.
  6. Your factor meets with you to discuss rates, terms and conditions.
  7. Your factor collects additional information as needed.
  8. Your factor provides you with a draft contract that includes terms, conditions and rates.

 

For information on TemPay and our payroll factoring services, contact www.tempay.com or (866) 683-6729.

TemPay Answers Your Top Client Questions

Posted on by

At TemPay, we receive questions about our payroll factoring services all the time. Here, we answer your top client questions.

What type of businesses do you factor?

TemPay’s main clientele is temporary staffing firms in any industry, including light industrial, administrative, information technology, construction, health care, legal, clerical and many others.

We also provide factoring services to businesses that regularly invoice creditworthy commercial customers.

We’ve factored companies in the staffing, IT, software, advertising, security services, auto, manufacturing and transportation industries. 

What size clients does TemPay service?

Firms of all sizes and in all stages can receive payroll funding, whether you are just starting a temp agency or established in the field, whether you have five clients or 50.

Are there any restrictions on a client’s location?

No. TemPay serves clients throughout the United States.

Are there restrictions on the location of a client’s customers?

No. Your clients can be anywhere in the United States.

Understanding Recourse and Nonrecourse Factoring Services

Posted on by

Most staffing agencies choose payroll factoring as their type of staffing agency finance. With factoring, staffing firms sell their accounts receivable invoices for a fee to the factor and gain cash up front to pay their employees and other parties.

There are two different types of factoring.

  • Recourse – With recourse, the staffing firm assumes the risk and losses for unpaid invoices. As a result, the staffing firm must buy back invoices that their customers don’t pay in a fixed amount of time.
  • Nonrecourse – With nonrecourse, the factor assumes the risk of bad debt and is out the money that it is unable to collect. This is safer for the staffing agency but riskier for the factor. This method is often used in 80/20 rule situations, in which 80 percent of your business comes from 20 percent of your clients, and if they failed to pay, your business would suffer greatly.

TemPay provides the former, recourse funding. Most factors provide this type of funding because it carries less risk. If a factor does offer nonrecourse funding, it typically comes with a significant fee.

For information on TemPay and its payroll factoring services, contact www.tempay.com or (866) 683-6729.

How to Recruit and Retain Your Staffing Sales Team

Posted on by

Selling in the staffing industry is different than conventional sales; instead of selling a tangible product, you’re selling a service. As a result, recruiting and retaining members of your temporary staffing sales team is a unique process.

“Staffing sales is more about education rather than just selling,” says C. Adam Forbes, president of BaronHR. “You need someone who can educate your clients on the services you have and how they can help their business, while also educating them on the potential risks and consequences of handling employment on their own.”

 

Evaluate sales skills

There are several skills you should look for in your staffing firm sales staff.

First, look for someone who is self-motivated and who has excellent people skills and strong adaptability, Forbes says.

“One day you’re speaking to a manufacturing plant manager, the next day you’re talking to a CEO looking for administrative help,” he says. “Temporary sales staff needs to be able to talk shop with mechanically minded people but also have the professionalism to speak to upper management. We cater to many different industries, so they also need to have a working knowledge of these industries to present our services in a way that is applicable to our potential clients.”

 

Look for staffing experience

Ideally, hire those with experience in the industry, Forbes says.

“Historically, the percentage of people who are a good fit and successful are those who come with staffing experience,” he says. “There are a lot of moving parts in the staffing industry, and if they don’t have the knowledge, it can be hard to sell.”

If they don’t have experience in staffing sales, experience in some aspect of a staffing firm’s business operations is preferred because they will understand how the industry operates. These could be people who have worked in workers’ compensation, human resources or temp payroll services.

 

Focus on retention

One of the best ways to retain your sales staff is to take care of their clients, which not only builds the reputation of your company but also the reputations of the sales representative, Forbes says.

Another way is to be a good listener and provide support whenever needed.

“Sales staff members need to be able to voice their opinions, and you need to understand their challenges and listen to what they are,” Forbes says. “Everyone wants support and structure to know they are given every possible opportunity to be successful.”

Recognition programs are also excellent retention tools. Consider recognizing your sales staff in company newsletters and at awards dinners, and personally congratulate them on good sales weeks.

A good compensation plan is also key. The best commission structures both incentivize the sales representatives and bring in new business.

“Reward your sales reps for bringing on new clients with a bonus and then with a residual commission based on the profitability of the account,” he says. “This encourages them to bring on profitable and healthy accounts because they benefit them long term. After a year, the commission should drop to encourage them to bring in new business. They can’t have just one big account that they’re living off for the rest of their life.”

7 Phone Etiquette Tips for Staffing Employees

Posted on by

While it is often tempting to shoot off a quick email when you need to communicate with one of your staffing firm’s client, picking up the phone is much more personal and also helps build rapport.

Here are our top seven phone etiquette tips for speaking with your staffing firm clients via the phone.

1.    Call at an appropriate time. This is generally accepted as between 8 a.m. and 9 p.m., unless you’ve received a request for an outside time. Be aware of different time zones so you don’t call too early or too late. Also, ask clients the best time to call them to avoid playing phone tag.

2.    Be polite. While this may seem like a no-brainer, it is surprising how many people fall into a pattern of rude behaviors, thinking they don’t matter or the client won’t notice. Answer the phone with a polite greeting, such as “Good morning. This is Joe at ABC Staffing Service. How may I help you?” as opposed to just “Hello” or “This is Joe.” Do not eat, drink or chew gum while on the phone. Never swear or use slang. And always end with a pleasantry, such as “Have a nice day.”

3.    Deal with angry callers calmly. Whether you are starting your own staffing agency or have been in the industry for years, you are bound to receive an angry call or two. Listen to the caller’s problem and ask for specific details. Allow him or her to vent, and empathize with the concern. Always apologize for any inconvenience. Present several solutions and let the person choose an option. Ask if the caller is satisfied and if there’s anything else you can do before hanging up. And if you make a promise to do something, do it immediately.

4.    Ask if you can put the caller on hold. If you need to transfer a call, speak to another member of your team or look up information, ask if you can put callers on hold rather than telling them. Take care of the task quickly; if the phone rings back to your desk, the caller has been on hold too long. When coming back to the phone, thank the caller for waiting.

5.    Return calls as soon as possible. Whether it is a message left on your voicemail or a verbal promise, return calls promptly. Whether the client needs immediate staffing, has a problem with a temp employee or asks a billing question, the concern is immediate and affects the caller’s. Quickly returning clients’ calls tells them how quickly you will handle their business in the future and how much you value them.

6.    Avoid distractions. Do not check your email, surf the Internet, text or play games on your cell phone, or update your social media while on the phone. Only speak to associates during a call if it is necessary. If you do need to speak to someone, ask if the caller can be put on hold, and make the conversation brief.

7.    Create an appropriate voicemail greeting. Greetings that include jokes or that are too long are inappropriate. A short, direct message is preferred: “Hello. You have reached Carol at XYZ Staffing Service. Unfortunately, I cannot take your call right now, but if you leave me a message with your name and phone number, I will return your call as soon as possible. Thank you.”

Temp Flexible Funding Not Just For Big Firms

Posted on by

One of the prevailing myths in the temporary staffing industry is that only large firms can receive payroll funding, and this is myth should be put to rest once and for all.

 

The truth

Firms of all sizes and in all stages can receive temp flexible funding, whether you are just starting a temp agency or are established in the field, and whether you have five clients or 50. Funding is also available for firms in any staffing industry, from light industrial, administrative, IT, construction, health care and legal to clerical.

 

The benefits

Obtaining temp flexible funding from a factor, especially one that specializes in the temp staffing industry, is often the best choice for temporary agencies. In factoring, temp agencies sell their accounts receivables to a factor for a fee to obtain cash.

Staffing industry factors are often more understanding of your firm’s unique needs than a traditional lender would be because they work specifically within the industry and understand that your temporary employees are often paid weekly, while clients don’t pay for 30, 45 or 60 days, creating a cash flow gap. So if you need quick funding to cover your workers’ compensation costs or office lease payments, or need a larger-than-usual advance to open a new branch, you have a better chance of getting it from a factor than you do from a bank.

In addition, factoring companies are fiercely competitive and want to keep your business, so they’ll generally be more open to requests than a bank would be.

 

For information on how TemPay can provide temp flexible funding, contact www.tempay.com or (866) 683-6729.

Factors Do More Than Payroll Funding: Full-Service Support

Posted on by

While payroll funding is a huge part of every staffing firm factor’s business, it’s not the only service a factor provides.
Factors offer a type of staffing agency finance called payroll factoring. With factoring, staffing firms sell their accounts receivable invoices for a fee to factors and gain cash up front to pay their employees and other related parties.

 

Unlike traditional financing, temporary agency payroll funding provides cash quickly without the hassles of lengthy business and financial reviews.

 

Full-service payroll funding provides back-office administrative services that allow you the freedom to focus on growing your business while the factor handles the details, such as filing payroll taxes, sending invoices and collections. Look for a factor that can:

 

  • Pay your temporary employees via check, direct deposit or payroll card
  • File and pay your staffing firm’s payroll taxes
  • Invoice your customers
  • Collect from your customers and follow up on delinquent accounts
  • Monitor creditworthiness of your customers
  • Deliver certainty with one low, fixed fee
  • Prepare extensive management reports on the administrative and financial activity of your firm
  • Provide software to manage your office

Your factor should also operate as a virtually invisible partner. Your employees and customers should see your temporary staffing firm’s name on their checks and invoices, and the factor should perform collection assistance as a representative of your company, providing the same great customer service your customers have come to expect.

 

Staffing Firm Finds Success With Temporary Payroll Funding

Posted on by

Operating a staffing firm is no easy task, as Carlos Sanchez, CEO and president of 360° Staffing, has discovered. When he founded his business in 2007, he knew it would require a lot of hard work. However, he has gotten assistance from a factoring partner that alleviates his temporary payroll funding needs, allowing him to focus on building and managing his business.

 

Immediate availability

As a staffing firm specializing in light industrial, office support and hospitality, with 24-hour service and thousands of employees around the globe, 360° Staffing needs a temporary payroll funding partner that understands its business needs and is ready to step in at a moment’s notice.

“Having a payroll funding factor stabilizes my costs,” Sanchez says. “My factor has been instrumental in understanding my needs as I grow and helping me fund new projects.”

For example, during Hurricane Sandy, 360° Staffing placed hundreds of employees in damaged areas to help with cleanup and rebuilding. Sanchez notified his factor that he would be upping his workforce, and the company assured him it had his back.

“I went out on the beaches myself to assist the recruiters, find people to work and prepare the employees for how to do their jobs,” he says. “Having my funding taken care of took away a big headache so I could focus on the task at hand.”

 

Seamless funding

Sanchez is a hands-on boss who leads through example, arriving at the office early and leaving late. He also strives to interact with his employees and has been known to drive temporary employees to and from job sites or buy them a meal.

“I believe my example motivates my employees,” Sanchez says. “They see me and have access to me. They know I’m just like them. Having a factor that handles my payroll gives me the time I need to focus on these interactions and therefore grow my business.”

 

Constant communication

For Sanchez, having a factor with horizontal communication is key. He has a key employee at 360° Staffing who works directly with the payroll funding company’s employee, who has a similar job function. This relationship allows 360° Staffing to submit client applications and soon after, receive detailed information on the client.

“With previous factors, they would only tell us whether the client was approved or not,” Sanchez says. “Now, we have a dialog, and the factor tells us why the client didn’t rate well and how we can modify contract terms for an individual client. They really partner with us and have our best interests in mind.”

Sanchez also maintains communication with the top management at his payroll funding company, who keep him abreast of what’s going on in the industry and who let him know of potential acquisitions.

 

For information on how TemPay can manage your payroll effectively and affordably, contact www.tempay.com or (866) 683-6729.