Factoring is a kind of financial transaction that occurs in the world of business when one company or organization sells its accounts receivable to a third party for the sake of having cash flow. Staffing factoring, then, is a transaction that occurs when a staffing company, such as an employment agency, sells its accounts receivable in order to fund operations. This kind of transaction is especially important among staffing companies since they often do not receive payment for placing employees until after the employee has received a paycheck. Some of the best tips for staffing factoring include finding a factoring service that is reliable with a good reputation and which provides a number of extra services that are useful for those in the staffing industry.
There are a number of different staffing factoring companies to choose from. Many experts believe that the best services are those that are provided by companies that with years of experience serving a wide variety clients. Some staffing industry professionals believe that the best factoring services are provided by a company that specializes in working with a particular industry, such as health care or manufacturing. Others prefer a company that is able to provide factoring services for a number of different industries since this may show flexibility on the part of the factoring company.
A variety of staffing factoring services are often provided along with basic funding. For example, many staffing companies prefer to use factoring services that also include tax preparation. In areas where it is necessary to pay taxes, a factoring company might prepare tax related paperwork for employees, distribute the proper forms, and even see that the completed tax forms are filed with the proper government agency.
Staffing factoring companies also may provide different methods for paying employees. Instead of distributing paychecks to staff members, a factoring service might provide them instead with payroll debit cards. These function like regular debit or gift cards, but when employees are paid, they receive money that goes directly into the account associated with the card.
Finding quotes and contracts that meet the needs of a business is another good tip for staffing factoring. Most factoring companies offer free quotes that allow staffing agencies to project what kind of cash flow and funding they can expect. Some factoring companies offer contracts that may bind a staffing agency for years and years, while others may offer contracts that are more flexible. The best choice often depends on the long-term goals of a staffing company.
