Why Your Staffing Agency Should Consider Payroll Funding
Written by moxysupport on April 17, 2015
In order to keep things operating as they should, staffing agencies have a lot of balls in the air. One of the biggest problems they face is having money on hand to pay their employees. The solution many agencies use is payroll funding.
What is Payroll Funding?
Payroll funding is a way to bring in money to pay employees on a weekly or bi-weekly basis. It is useful because often the customers of a staffing agency may not remit payment for a month or longer. The gap between when employees need to be paid and when customer payment is remitted can cause difficulty.
But payroll funding is a kind of accounts receivable that closes that gap. When an invoice is sent in, the payroll funding company will buy it and the staffing agency can use that money to pay its employees. When payment is remitted, the payroll funding company is paid back.
What are the Biggest Benefits of Payroll Funding?
Steady Cash Flow
Pretty much any business could use additional money on hand, and this is especially true of staffing agencies that have their cash flow tied up in a variety of areas. Payroll funding allows agencies to get the cash they need when they need it, so they don’t have to wait until an invoice is paid. This will ensure that there is always money available for all business expenses.
Peace of Mind
Just as with other businesses, staffing agencies have busy times as well as times when they are not so busy. Payroll funding offers flexibility and allows agencies to never have to worry about the money they need. It also acts as kind of a financial parachute. Imbalances between income and expenditures can be very harmful to a business, but payroll funding takes that risk out of the equation.
Someone who works for a staffing agency knows as well as anyone how important it is to keep employees happy. And the best way to do that is to always ensure that they are paid on time. Employees who can count on getting their paychecks when they should are generally happier and more productive workers.
Even if a staffing agency is waiting for payment from multiple clients, with payroll funding, they will never have to worry about paying their employees out of their own pocket.
If your staffing agency is short on funds or you anticipate a cash shortage in the future, payroll funding could be just what you need to keep things running smoothly. To make sure that you get the best payroll funding services, contact US Funding. We have been providing cash flow management solutions to businesses in the Triad area for over 15 years.
Our dedicated and experienced employees will work closely with you to ensure that you get the exact services you need. Your employees rely on you to keep them working, and you can rely on US Funding to keep your staffing agency functioning with the cash on hand to conduct business.