Feeling like cashing in your chips?
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
3y ago
The COVID-19 pandemic has brought hardship to a number of businesses. And among those facing struggles are factoring companies. Right now, projections are that more than 100,000 small businesses have already gone out of business permanently because of the pandemic, and more are expected to close as government-imposed restrictions and nervous consumers threaten a prolonged spending freeze. That’s left many business owners, some of whom had just barely survived the recession in the early 2000s, with dim prospects. And many are likely wondering whether or not it’s worth trying to keep up operatio ..read more
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Coronavirus disruptions provide staffing firms with opportunity
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
The coronavirus pandemic has brought with it devastating consequences for the employment sector. Many businesses have closed their doors and have no sense of when, or if, they might open again. However, some industries have proven resilient, either by necessity or by demand. Many of these businesses need more help, and that’s creating an opportunity for staffing firms. According to a recent cnbc.com article, workers are needed in areas such as online retail, supermarkets and hardware stores. There are also demands for truck drivers, customer service representatives and software engineers, amon ..read more
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How full-service payroll factoring enables new staffing businesses to thrive
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
The financial choices you make during the early stages of your staffing firm are critical to its growth, and among those choices is how to fund payroll. Your first instinct may be to look to banks as a payroll funding solution. But the long application and approval processes, many fees, and strict covenant requirements typical of traditional funders can stifle a fledgling firm’s growth, making it difficult to invest in your new business. You might also consider addressing cash flow issues with small business credit cards, but high interest rates and limited credit limits can put a crimp on gro ..read more
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Signs that it might be time to find a new payroll funding company
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
Given the importance of a payroll funding company to the continuity of your staffing firm, it’s critical to take the time to review the relationship and look for warning signs that your provider might be underperforming. When reviewing your payroll funder, consider whether full-service or money only best serves your business. In addition to advancing most of the funds needed to cover your payroll expenses, full-service payroll funders handle many of your back-office responsibilities, freeing up considerable time to grow your business. They also offer reporting on the financial activity of your ..read more
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How to choose the right business structure for your staffing business
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
The business structure you choose for your staffing firm will have far-reaching consequences, so choose carefully. This decision will affect your personal legal liability, how the firm can raise the money it needs to operate, the paperwork you will be required to file and what you — and your firm — will pay in taxes. Before choosing a structure, it’s important to create a business plan. It is the blueprint you’ll follow to build your company, and it provides a clear picture of where you want to be. It outlines all of the major aspects of the business and keeps you and your associates focused a ..read more
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How outsourcing your back office functions can save you time and money
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
There’s a lot to think about as you’re running your staffing firm. And with all those to-dos jostling for position, invoicing your clients can get lost in the shuffle. While your mind is likely working through ways to grow your business, critical yet tedious and time-consuming administrative duties can be left unaddressed. That could lead to overdue payments, or worse, not getting paid yourself. Working with a full-service payroll factoring company can help solve those issues. Full-service factoring companies can: Ensure your temporary employees get paid File and pay your staffing firm’s payro ..read more
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The importance of knowing your clients’ creditworthiness
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
Creditworthiness might not be top of mind while you’re negotiating a deal with a potential client. However, it’s something you shouldn’t ignore. It does little good to win business if the client doesn’t pay or goes bankrupt mid-contract. That’s why, before you sign a contract, it’s important to evaluate your potential client’s credit. As Michael Neidle, president and CEO of Optimal Management, put it in Staffing Stream magazine, too many staffing firms are so eager to sign new business that they’re not thinking about much else, and that includes the level of credit risk prospective clients pos ..read more
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How to price your staffing services
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
Setting the prices for your staffing firm’s services can be tricky. Some of the costs that you need to cover are obvious — the pay rate of the worker, employer taxes (FICA, Medicare, SUTA, and FUTA), workers compensation, any benefits that are paid, plus overhead. But determining the remainder of the markup is difficult, especially when trying to stay within the range of market competitors while generating a level of profit that makes it worthwhile. Writing for Staffing Industry Analysts’ “The Staffing Stream,” Kirk Reade, a senior associate with Brightfield Strategies, offered a two pricing m ..read more
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How to shop for a new payroll funding partner
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
Your staffing firm has outgrown its payroll funding partner, and it’s time to canvass the market for a better option. But where do you start? First, you need to determine what type of funding you need. Explore traditional banking partners, which will offer loans or a line of credit, and see if those terms, including interest rates and arrangements, suit your situation. Remember to explore the covenants you will need to maintain to stay in the bank’s good graces. Factoring companies, on the other hand, buy your accounts receivable for a fee and advance 90 percent or more of the invoice amount ..read more
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How to get the working capital you need for growth
TemPay - Payroll Funding & Accounts Receivable Factoring
by Kristy Amy
4y ago
When a strong economy creates a demand for labor, and new clients are in need of temporary assignments, funding needs for your staffing agency can increase dramatically. Payroll costs increase at a faster pace than the rate you are being paid by new clients, meaning you are quickly burning through cash and credit. Capitalizing on a growth opportunity may require a build-up of other assets — more permanent staffers to handle your firm’s increased workload, a marketing blitz with increased ad buys to strike while the iron is hot, or the establishment of satellite offices to provide better and mo ..read more
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