"I just wanted to let you know how helpful your staff has been during this quick transition. It's great to be working with a pro team like yours. Thanks again!" -- M. Todd Barnes, President & CEO of Barnes Personnel

Payroll Funding for Staffing Companies

TempWorks provides payroll funding for all sizes of staffing companies, from start-ups to well-established recruiting services with large corporate clients. We will help you grow and flex with your client base.

A payroll funding contract represents a complex, long-term transactional relationship; terms can be critical to your profitability. TempWorks will work with you to design a reasonable arrangement that addresses your unique needs.

How to Review Payroll Funding Alternatives

Consider the following issues when choosing a payroll funder (factor) and negotiating a contract:

Have Experience
- TempWorks has been in the staffing industry for generations, having helped many leading companies flourish.
Flexible Terms
- Payroll funding contracts vary in length from one month to several years. A contract of one month or less in length will typically have higher costs and interest rates than a longer contract.
Variable Interest Rate:
- The interest rate varies based on your volume and history. A start-up will pay a higher rate than a large, well-established company.
Cancellation Policy
- A default provision may take effect at cancellation or if you stop funding. Penalties cover costs to the funder in new account setup, due diligence and covering the start-up phase.
Terms of Renewal
- A contract may include an evergreen clause that automatically renews unless you give a 120-day notice of cancellation. If so, you should re-evaluate the contract before each renewal period begins.
Billing
- An important factor to negotiate, based on expected aging of your invoices, is the application of overdue payment charges. Variations include a single fee at 30, 45, 60 or 90 days, or a fixed-percentage charge every day after 30 days.
Advance Rate
- This is the amount advanced to you when the funder buys your invoice. A rate of 90% means the funder advances $9000 on a $10,000 invoice, retaining the balance as a reserve.
Full Reserve Payout
- Because fees are processed out of the advance rate, you can look forward to a full reserve payout without anything being subtracted from it!

Funding from a full-service provider

TempWorks is a full-service funding provider for staffing companies. We provide complete software and service solutions for recruitment and payroll, in addition to payroll funding with a flexible remittance system.