5 Top Benefits of Payroll Funding
We know that business expenses can be overwhelming and can even become a major setback for your company. Having the funding you need to operate smoothly and expand is crucial, so you may need to find a way to securely gain that money. This is when invoice factoring comes into play. Numerous staffing agencies and other businesses that have accounts receivables take advantage of payroll funding, which is another term for invoice factoring.
If your staffing company is in need of a more consistent cash flow, invoice factoring is the best financial solution. Take a look below at a few reasons why payroll funding can help your business today.
1. Invoice factoring is a quick and easy process
One of the main benefits that many business owners appreciate about invoice factoring is that the process is fast and convenient. Not only is it a smooth process, but you will receive your cash quickly. Bank loans can take a long time and are often, hard to come by. With factoring you can have your cash within 24 hours of being approved.
2. Good credit is not required
If you are trying to work your way out of bad debt, you don’t have to worry about not qualifying for factoring. Because a factoring company will go to your client to pay the invoice, you don’t have to worry about your credit. If your client has good credit then that’s all that matters. All you need to do is sell your invoice to the factoring company, then they will give you an advance and will do the work of collecting the sum owed.
3. Debt-free transaction
Another great benefit of invoice factoring is that it isn’t like a loan where you have to pay it back. Rather, it is a purchase of the invoice, so the cash advance you receive can be used in anyway you need. This is also a great option for those businesses that are trying to work their way out of debt.
4. Financial security with invoice factoring
Because the business world is often a risky venture, as the economy is always changing, it can be difficult to retain financial security. If you take advantage of payroll funding, you can be sure that you will have the working capital you need to pay your employees, take on more clients, etc.
5. Promotes better company culture
Would you rather have stressed and unhappy employees, or happy and productive employees? Seems like an obvious answer, right? With payroll funding, you can gain the cash flow you need to spend the money on needed resources, new hires, and more that will help your current employees to manage their responsibilities easier and more efficiently. If you are unable to pay employees on time, this is a major issue that can lead to more problems. Yet, when you have the funds to make the payroll process easier, your employees will be happier and create a more positive work environment.
If you want to experience the ease and efficiency of a well-oiled machine that comes from a consistent cash flow, then you need to take advantage payroll factoring.