What Is Temporary Agency Payroll Factoring?
TemPay offers a type of staffing agency finance called payroll factoring. With factoring, staffing firms sell their accounts receivable invoices for a fee to TemPay and gain cash up front to pay their employees and other related parties. TemPay advances up to 90 percent or more of the agency’s invoice total, among the highest advance rates in the industry.There are two different types of factoring: recourse and non-recourse.
- Recourse – This is the type of factoring TemPay provides. It means the staffing firm assumes the risk and losses for unpaid invoices.
- Nonrecourse – This type of factoring means the factor assumes the risk of bad debt and is out money for an uncollectable bill. TemPay does not provide this type of factoring.
TemPay offers full-service and money-only options, depending on your business needs.
Temporary agency payroll factoring provides an enormous benefit for your business. It provides cash quickly without the hassles of the lengthy business or financial reviews of traditional lenders.
Factoring companies are also typically more tolerant and understanding of your needs than a traditional lender. Because TemPay specializes in the staffing industry, it understands the nature of your business and is willing to work with you depending on your specific situation, whether you need an overadvance for payroll one week or a little extra cash to cover your office lease.