RE: How much should staffing agencies get above my hourly billable rate?

Larson Rider wrote:
> I have several contractors who have had payment issues on direct 
> contracts they have had in the past and they love that we pay them 
> regardless of collection issues.

You don't necessarily need all the services (and costs) of an agency to
solve that problem. There are companies that provide "invoice factoring"

like services for contractors, where they handle the collection and
smooth out the cash flow. Costs for such services are around 5%.

  -Tom
****
5%?! Wow, where did you find that? I was talking W2 pay here. Not 1099.
For 1099 or corp. to corp. revenue factoring without tax services, the
lowest is 6% of the total receivable and you have to meet minimums to
get that low rate, most are 11% and more unless you are factoring very
large weekly receivables. BTW, ALL of them have a contract clause to
chargeback to you amounts paid that are over 90 days late in being
collected or are uncollectible. They all have an extra administration
charge if this occurs and if you don't pay the chargeback there are dire
consequences. NONE of them say they will front you your pay and not
chargeback even if they don't get paid; We do, which was my main point.
Lowest W2 factoring I have found is 20%. Lowest payroll agency rate to
monster sized accounts is 18.5% 

I don't mean to play one-up-man-ship or get into a pissing contest here,
but I think you are quoting hearsay or not fully investigated figures.
What I have said is not my opinion, but actual experience that is field
tested and retested regularly... It greatly affects my business.

Lars