What is Payroll Funding and Why Do You Need It?
Right now, many businesses are still reeling from the slow economic conditions of the past few years, which means that they can’t afford or don’t want to hire full time employees, or even part-time employees. So, business owners turn to temp staffing companies to fill their employee needs.
Increased demand, however, often means that temp staffing companies can have a hard time keeping up with payroll. Being too busy is a good problem to have! But every problem needs a solution, and here at US Funding, we can provide payroll funding to help you grow your staffing agency.
There are some major advantages to payroll funding, but first, let’s talk about what this kind of financing is, so you can determine if you need it.
Simply put, payroll funding is a type of financing that specifically helps you pay your employees for the temporary staffing positions they’ve taken.
Most of the time, you’re paid from the client – the company with the staffing needs – every 30 to 60 days. However, employees typically want to receive a paycheck every week or, at most, every other week. Temp workers work for your company, not the client, so you’ll be on the hook to provide their paycheck, even though you haven’t been paid for their work from the client yet.
With payroll funding, you allow US Funding to manage your accounts receivable – the clients who owe you for the work your temp employees have done. In return for a small fee, we’ll give you the cash upfront to pay employees on a weekly or biweekly basis.
There are several advantages to this kind of financing:
- First, you can move on big contracts quickly. A bank often can’t give you a credit decision fast enough for you to commit to a large temp staff contract, but we can – and we can get the money into your account quickly so you can start paying employees immediately.
- We can be flexible. With temp staffing, contracts come and go fairly quickly. We’re set up to meet the challenges presented by the ebb and flow of temp staffing needs.
- No more stress! With this kind of financing, you don’t have to worry about juggling a demanding payroll schedule. We’ll deal with the accounting and cash flow; you just worry about growing your business.
Here at US Funding, you get to choose the services you need from our a la carte menu. Create your own service package based on your business needs. We can provide invoicing, collections, payroll, and more, but you don’t have to take advantage of all of our solutions. We’re flexible, so you never pay for payroll funding services you don’t need.
Best of all, we have 24/7 online reporting, so you never wonder about the state of your accounts. You can access your records at any time, and our staff is always available to answer your payroll questions or go over your account.
Ready to learn more? Contact us today by calling (336)-812-9767. We can talk to you more about all of the benefits to our payroll support services.