The Reason Why Payroll Funding Is Useful
Based on the American Staffing Association, there are more than 3 million contract and temporary employees that are working for staffing agencies in the country for an average week. That is why having access to steady cash flow is really important for the staffing agencies. Among the most common concerns for staffing agencies is to wait for the customer payment. That is why every time they will be making the weekly payroll, they will find out that they are already short on cash.
Take note that in an industry that prosper on accepting new contracts, you will be missing out on a lot of opportunities if you will not have the working capital you will need to meet the payroll deadlines and other obligations. That is why there are service providers from this pagethat provide payroll funding with the ability to meet the payroll deadlines so you can focus on the growth of your agency.
It is important for you to know how payroll funding works.
The number one concern of an agency is to meet payroll. That is why you need to have customized programs made to meet the needs of your payroll and many more.
You can actually send the invoices directly to the payroll funding company instead of sending them to customers and wait for the payment.
These companies provide a same-day advance on all of your invoices that will be deposited to your bank account in just 1 day.
Right after the customer will pay the invoice, you will receive the remaining amount of the invoice with a deduction of a fee. You need to know that margins are strict when it comes to the staffing agencies that is why the payroll funding companies will offer low rates that will lower as it grows.
But you will not only receive cash flow if you will partner up with a payroll funding company. There are actually so much more that you will enjoy. This article will provide you with the benefits that you will get from payroll funding. Get helpful details at https://www.yourdictionary.com/staffing.
Payroll funding can give you a consistent cash flow. It will be difficult for you to know when the payments will arrive if there is no payroll funding.
Payroll funding will let you save time. There are times that factoring companies will provide services to help the staffing agency streamline the processes of collection and invoicing. Payroll funding companies provide a spectrum of support services to their clients like collections, accounts-receivable management, risk assessment, credit analysis, and treasury services.
Payroll funding will also let you grow. It allows you to accept new contracts easily since the financing from the factoring company will grow together with your agency.
Payroll funding will not add debt to your balance sheet. Not like the bank loans, payroll funding will nto create debt on your balance sheet. It is actually a debt-free financing that will grow as you grow.
Payroll funding will help you pay bills on time. Because you no longer have to wait for customer payments, it will be easier for you to pay the bills on time. Read on then to learn more.