Payroll funding is a very known common form of funding for staffing agencies, but it can also be used by almost any small business with B2B clients. One of the familiar concerns for businesses of all sizes and stages is covering payroll. Your employees may be paid weekly, but your customers may pay their invoices 30, 45, 60+ day terms. Payroll funding companies help to bridge the gap in cash flow between the time you provide your services and when the time your customers pay.
Payroll factoring assures that you’ll get paid right away for your services. A payroll funding company not only purchases your invoices but also advances your business up to 95% of the cash—immediately. Once you’re approved for funding you can have your cash in as little as 24 hours. You can use this extra capital for anything you’d like whether it is for paying staff, purchasing new supplies, hiring new employees or anything else to help your business grow.
Temporary Staffing Agency Funding & Additional Staffing maintenance :
It is necessary to find a payroll funding service which will specifically be designed for meeting the needs of your staffing company. If you own a start-up staffing company or one that is growing rapidly, some optional administrative and back office support services are available for reducing your overhead costs and it allows you to focus on more essential elements of your temp staffing firm like-
- Billing & collections
- Payroll processing
- Tax preparation
- Accounting services
Step of Payroll funding:
The steps of payroll funding are as follows –
- Step – 1: Serve your customer as on a regular basis.
- Step – 2: The factoring company will advance you up to 95% of the amount of the invoice.
- Step – 3: The customers of yours will make payment to the factor.
- Step – 4: Once the funder collects payment from your customers, the remaining amount will be returned to you immediately.
What to Expect with a Payroll Funding Company
After you are approved for payroll funding you will be matched with an experienced account manager and he will guide you through the process. The account manager will take care of all account duties including customer credit checks and approval, billing as well as the collections so you can get back to focusing on the growth of your business. Working with a factoring company will ensure that you will never have get worried about making payroll or not having enough capital for running your business.
For starting the approval process, you’ll need a completed application with a few documents and they are –
- Articles of Incorporation
- Accounts receivable aging report
- Accounts payable aging report
- Invoices that you wish to factor
- A list of current customers
About Bad Credit:
Doesn’t matter if you’re a start up staffing company with no credit history or if you own a business that faced credit problems in the past, for payroll factoring you can easily be approved. Because, your customers are responsible parties for the invoice payment. As long as your customers are worthy to be trusted and have a good credit score, you will most likely be approved to finance your payroll.
When you are running a business it nothing impossible to run short on cash and getting worried about funding your payroll. But if there is a problem there can also be a solution and we’ve given you some idea in this manner. But for more elaborate details you can have a look at fastpayrollfunding.com .