The true cost of payroll funding has been sliced, diced and
analyzed many times in staffing industry trade publications.
The large banks with their "cheap" money like to tell you that the
flexibility offered by factors does not make up for the exorbitant
cost of their service fees. They may even tell the business
owner how easy it is to have a line of credit extended. The
"exorbitant" cost is often what allows a staffing business
owner enough to cover his weekly payroll obligations to
service more business that a limited bank line would not
allow.
At Tempworks, we provide a convenient funding and payroll
program by way of a familiar and proven platform; Tempworks
Enterprise. The fee for the Tempworks Venture or
Paperless Staffing program is based on a number of criteria,
chiefly volume and quality of accounts receivable. Since we
launched these services back in 2007, we have found that in most
cases the fees we charge are about the same as factors who do
little more than provide 80% of an invoice.
TempWorks and the Factors have vast differences:
- Tempworks has never had a client that wasn't a staffing
business.
Majority of factors deal in trucking, import/export and other
rough and tumble industries. The staffing company is burdened by
the industries serviced by the factor.
- Tempworks Enterprise allows for full automation and
integration
With a factor, you both receive and provide data in a format of
their choosing.
- Do you know who is behind the finance company you borrow (and
in many ways determines the current and future health of your
company) from?
As a Tempworks client, you know we are rock solid. The
company has been around since 1994 and has been improving and
upgrading the products since day one. Strength and stability are
what you need most from a lender partner.
Please contact me, Jack Terrana, VP of Tempworks Venture to
discuss our additional product offerings.
Please call me at 516-424-5500 and join me each Friday at 10:30
for my weekly webinar "How to Start a Staffing Business".