In your staffing business, you are always the middleman. When there is a delay in the payment process, your business can suffer greatly. When your cash flow gets low, you may think the best option is to get financing through a bank. Rather than going through the hassle long wait times, expensive fees, and higher rates at a bank, there’s a more affordable option that can give you the same, if not more benefits — payroll funding.
4 Benefits of Payroll Funding for Your Staffing Business
Payroll funding is a great way for your staffing business to take control of its cash flow, quickly. Here are 4 additional benefits that your staffing business can acquire when utilizing payroll funding.
1. Get Instant Access to the Money Owed to Your Business with Invoice Factoring
As mentioned before, your staffing business is constantly waiting for invoices to be paid and processed. With payroll funding, you’ll get instant access to the money owed to your business. This is accomplished through an invoice factoring company. The invoice factoring company will purchase your outstanding invoices and advance up to 96% of the funds into your account in just 24 hours or less.
Some invoice factoring companies offer non-recourse payroll funding, which allows you to get funding without the risk. With non-recourse payroll funding, the factoring company takes 100% of the risk on the amount advanced if your client fails to complete payment on their invoice.
This allows your staffing business to get a hold of the cash owed, while having complete peace of mind that you’ll be able to keep it—no matter the outcome.
2. Financial Security with Invoice Factoring
In today’s ever changing economy, financial security is hard to come by. By utilizing payroll funding, your business will be able to build and secure a strong source of working capital. With a strong source of working capital, your business will be able to take on more clients, produce more work, and grow larger than ever before.
3. Flexibility in Slow & High Demand Periods with Invoice Factoring
As you know, there is seasonality in the staffing industry. When the holidays come around, your business is booming. When your cash flow is low during these times, it makes your job a lot more difficult.
With payroll funding, you’ll be able to have the financial flexibility your business needs in order to carry out everyday tasks and fulfil every request. You’ll be able to survive in the busy time and in the lean times when unexpected expenses seem to come at you from every angle.
4. Better Company Culture
When your staffing company uses payroll funding, you close the gap between getting a job contract and processing the payment. Making payroll faster for your employees will create a happier staff and attract talented staff to your business.
Having strong cash flow in any business is important, but especially in your staffing business. We hope that these four benefits will help you better understand how payroll funding can help your business secure a strong source of capital and grow larger than ever before.