Payroll Funding Rates Comparison

By analyzing numerous payroll funding contracts, settlement statements, and staffing company financials, PayrollFunding.com aims to compile and present historical data in aggregate form in order to help staffing professionals make better decisions about their financing strategies.

While evaluating and selecting a payroll funding partner solely on cost is not advisable, PayrollFunding.com believes that clarity and visibility into market rates will assist companies in their decision making process. Staffing companies operate in a competitive marketplace with tight margins and any reduction in financing costs flows directly to the bottom line.

In most instances, payroll funding discount rates are driven by three variables. These are:

1. The revenue or volume of business the staffing company is funding.
2. The average length of time it takes for invoices to be paid.
3. The credit quality of the staffing company’s customers.

With incomplete information in regards to customers’ credit, the benchmarking presented below is focused on analyzing the impact of size and days receivable outstanding on the cost of payroll funding.