Payroll Funding Can Help Your Busy Staffing Agency
Written by US Funding on December 25, 2015
With the end of the year approaching, now is a good time to look back on the last 12 months and review how things went for your staffing agency. If your business has had a good 2015, you should reward yourself and everyone else who contributed. Running a successful business is not easy, and you deserve accolades for all of your hard work. Once you have celebrated a little, the next step is to think about 2016. Chances are, you already have some plans in place and it is going to be a busy year for you.
New customers and extra work are always welcome, but they do come with their own unique challenges. For example, how long does it typically take to get payment from your clients? Probably at least 30 days, right? It may be even longer than that. How often do you pay your employees? Most likely it is on a weekly or bi-weekly basis. Do you see where the conflict is? If you have to wait for a month or longer to get paid, where will the money come from that you need to give to your workers? This is where payroll funding can be a very valuable asset.
How Does Payroll Funding Work?
The payroll funding process is pretty simple. You have accounts receivable that are awaiting payment. While there may be some large numbers on those documents, until that money is in your hands, they are essentially meaningless. A payroll funding company will buy those outstanding invoices from you. In exchange, you will get cash almost immediately. You will never have to worry about those bills being paid, as you do not own them anymore.
And with the money you now have, you will be able to pay your employees and use it wherever else it is needed. This will not only give you peace of mind that your workers will be taken care of, but now you can more easily think about the future. Perhaps you want to expand and take on new clients. This means that you will need even more employees. But with payroll funding, you know you will be able to make sure you can meet your payroll obligations.
Does the Money from Payroll Funding Need to Paid Back?
In addition to getting quick money, the best part of payroll funding is that it is not a loan. You are selling your invoices just like you would in any other financial transaction. The money is yours to do with as you determine, and you will never have to worry about having to pay it back or interest payments. You have the money you need to fund your operations and you have not added debt to your balance sheet!
If your staffing agency is headed for a very hectic – and hopefully profitable – 2016, payroll funding may be a great solution to your potential cash flow issues. To learn all about your options, get in touch with US Funding. We will give you all of the information you need and help you any way we can.