In most instances, payroll funding discount rates are driven by three variables. These are:
- The revenue or volume of business the staffing company is funding.
- The average length of time it takes for invoices to be paid.
- 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.