How Payroll Funding Has Been Helping Staffing Agencies
Staffing agencies face a lot of financial challenges in an unstable economy. Payroll funding has been assisting staffing agencies by helping them gain the resources they desperately require. Here’s how payroll funding solutions can help your staffing agency.
The Impact of Payroll Funding
The end of last year and the beginning of 2023 has seen massive tech layoffs and an unstable economy. As a result, companies were forced to lose a massive amount of workers in a relatively short period of time. With the hiring of permanent staff coming to a halt, staffing agencies were faced with economic hardships of their own.
While businesses are still seeking out employees, they are more likely to seek out temporary workers or independent contractors due to financial difficulties. They might even not be able to pay staffing agencies upfront. Payroll funding has been helping staffing agencies obtain the funding they need while they wait for companies to pay them for their services.
Payroll funding offers a range of financing solutions for staffing agencies, including a factoring line of credit, factoring loans, and asset-based lending solutions. Invoice factoring is a popular form of payroll funding. It is similar to a business line of credit; however, unlike a bank loan, you receive funding as quickly as the same day. It provides staffing agencies with quick funding that they can use to pay their staff and help companies hire new staff.
Some advantages of invoice factoring include:
- A staffing agency can receive quick access to funds without having to wait for lengthy bank approval.
- Staffing agencies can receive up to 95% of the amount of their outstanding invoice.
- The payroll funding company can take over the client payment process for you, leaving your business with one less thing to stress over.
- Your business will receive cash to pay staff and stay out of debt during an unstable economy.
Invoice factoring can serve as the catalyst for growth allowing you to increase your revenue and make more money.
Forming a relationship with a factoring company can provide you with the liquidity required to scale your company. Come grow with KORE Capital Corporation.
To find out more about our payroll funding for staffing agencies, give Kore Capital a call today!