Have a question about how staffing agency funding or back office support works? Get answers here.
Invoice factoring is when a business sells its outstanding accounts receivable to a third party in exchange for immediate liquid capital, less a fee. See our invoice factoring page for more in depth info and visual aid.
Invoice factoring is designed specifically for businesses like staffing because of the unique payment structure. In staffing, you often have to wait 30-90 days for payment from your clients, while you pay your staff weekly. This can cause a cash flow nightmare, and be limiting to your growth. Invoice factoring gives you the cash necessary to grow without having to worry about making payroll..
No difference. Payroll funding is the term we use when talking about invoice factoring specifically for the staffing industry.
The cost of factoring is variable and depends on many factors – the amount of your receivables, stability of your business, the size of each invoice, etc. To get a true estimate of the cost for your individual business, contact an Advance rep today for a free consultation.
Full service is an add-on service where the same third party that does your invoice factoring will also do back office tasks like creating and processing invoices, processing payroll, and doing payroll taxes. For a more complete definition, see our page on Staffing Firm Funding With Full Service.
If you have good experience and the will to succeed, starting a staffing firm is a great idea. For a minimal technological investment, you can run a staffing agency almost anywhere. We have several resources on how to start and maintain a staffing firm that you might be interested in: