In addition to our suite of software products, TempWorks Software also offers a variety of payroll services through our sister company Lone Oak Payroll. Payroll processing, payroll funding, and tax management are just a few of Lone Oak Payroll’s provided services that help clients cut both cost and time in their business operations, allowing them to focus on growing and strengthening their companies. We pride ourselves on the impact we’ve had on clients and their ability to thrive and succeed, even during the last challenging year:
Vision Employment Group is a small, locally owned and operated company in West Texas, and has used Lone Oak Payroll since 2014. We have been so pleased with their flexibility of services, and their attention to great customer service. Even during a pandemic, we have been able to continue to work as an essential business, and never had to close our doors or work from home. We never lost any clients and were able to think outside the box to maintain revenue, and reach other avenues of services through TempWorks. —Vision Employment Group
Of all the services Lone Oak Payroll provides, one of the most popular is payroll funding, a series of financial transactions that allows your agency to have as much readily available cash as possible to cover your business costs. Payroll funding is especially of benefit to smaller staffing agencies who have limited cashflow and not enough credibility to quality for bank loans. If you’re curious about how your staffing agency might benefit from payroll funding, read on for more details.
What Exactly Is Payroll Funding?
Payroll funding is when a staffing agency sells its accounts receivable to a third party company (such as Lone Oak Payroll). Lone Oak Payroll will advance up to 97% of the invoice value up front, providing the staffing agency with enough immediate cash to pay employees and other operational costs. When the Lone Oak Payroll finally receives payment for the invoice, we return the remaining 3% to the staffing agency (minus a factoring fee).
Here is an example of payroll funding in four simple steps:
- Your staffing firm generates a $1,000 invoice that your customer agrees to pay in 30-90 days.
- Lone Oak Payroll buys your invoice and advances your firm up to 97% of the invoice ($970).
- Your customer pays Lone Oak Payroll the cost of the invoice ($1,000).
- Lone Oak Payroll deposits the remaining $30 invoice cost into your account (minus our small factoring fee).
Note: You may hear the term “invoice factoring” used interchangeably with “payroll funding.” They share the same definition, but “payroll funding” is specific to staffing, whereas “invoice factoring” can apply to any industry.
How Does Payroll Funding Benefit You?
Payroll funding helps keep your company away from busywork, lets you focus on streamlining the parts of your business that will bring you growth and strength, and gives you the cash you need to pay your hard-working employees on time. If you’re interested in learning more, please visit Lone Oak Payroll’s website and check out our Payroll Funding FAQ.