Why Do Staffing Agencies Need Payroll Funding?
Written by US Funding on June 16, 2015
With the economy getting better all the time, more people are now working again. This is great news for many, and particularly for staffing agencies. When companies are hiring and need to fill spots as soon as possible, staffing agencies are then tasked with finding the right people. Your agency has probably experienced some of this growth, and is perhaps still in the midst of it. Even if you have never been busier, it is possible that you are still finding yourself short on cash. There is a solution for this: payroll funding.
What is Payroll Funding?
As you surely know, while it might take up to a month or longer to get payment from your customers, all of your employees need to be paid every week or every other week. Payroll funding is a way to get the cash you need without having to wait until it comes in from your customers. There are a number of benefits payroll funding offers staffing agencies, such as:
Your working capital needs can change all the time, and that is why flexibility is crucial. This is probably the biggest advantage of payroll funding; you will be able to get exactly what you need, when you need it. Payroll funding also gives you peace of mind knowing that the money you require is available.
When you are in need of funds, you can spend a lot of time doing research and trying to figure out where you can get it. But when you use a reputable payroll funding company, you will not have to waste time doing that. This will free you up and allow you to focus on running your agency.
Do you use your own personal money to pay your employees? A lot of staffing agencies end up having to do this. If you are putting payroll expenses on credit cards and then hoping your customers pay you on time – or are not going to pay late – a very stressful situation is being created and one that puts you further in the hole when you get hit by the interest you have to pay. Payroll funding eliminates the need to dip into your own accounts.
When your working capital increases due to payroll funding, you now have the opportunity to take on new business, which will grow your agency. No matter how many employees you take on, payroll funding will give you the money you need to make sure they get paid on time.
Even if your agency is doing really well, you may still find yourself short on funds. If this is the case, contact US Funding. We will talk with you about your business and your specific needs and then get you the money you require as quickly as possible. Instead of nervously waiting for your customers to send you their payments, get in touch with us. We have the almost-immediate solution to your funding issues.