Get the Funding Your Agency Needs
Have you thought about using payroll funding for your temporary employment agency? As a temp agency, you are, in essence, the middleman working between your companies and employees. That can often mean that those service invoices from which you draw your profit can also cause delays that can make it hard to pay employees on time, every time.
You could already stretch your funds thin due to other obligations such as workman’s compensation, office equipment, utilities, and more. Waiting for thirty days or more for invoice payment can hurt. Restrictions on cash flow could be due to periods of rapid growth and seasonal patterns. It is not likely that you will be able to put off paying your employees until that money comes in.
It does not matter whether you are a fledgling company that is just getting starting or a thriving agency that has already established a name in the community. Every business goes through upturns as well as downturns. Payroll funding might be the answer you are looking for to get you through the slower times.
The faster your growth occurs, the harder it can be to manage your cashflow. Especially if everything seems to happen all at once. While it is true that it can look great on paper, the actual cash flow will not be nearly as great. Slowly paid invoices can create a cycle that can take its toll on your business.
Payroll funding is an easy concept to follow, once you know the in’s and out’s of how it works. Simply stated, you sell your invoices to us, and we send you weekly advances that you will use to pay your temporary employees. It is just that simple.
Payroll funding is a type of invoice factoring. The way invoice factoring works is that a third party purchases the invoices of a business that is asset-based and provides that business with immediate cash payments. This keeps the business from having to procure a loan or take on some other kind of payment. It also allows them to keep all of their cash in the business. It is also different from seeking credit in that your invoices are purchased outright rather than being placed up as collateral.
For instance, if you were a grocery store and wish to make use of invoice factoring, you would sell all or a portion of your invoices for credit card payments to us. We would, in turn, give you a cash sum, not quite equal to the total of the invoices. Once the invoices are paid in full, to us, we will remit the remainder of those payments, less our fee, to you.
There are many benefits to invoice factoring. You will have immediate access to cash that you will be able to work with instead of waiting for payments to come in from your customers, which could take as long as sixty days in some cases. Also, you will not have to worry about the time and effort it will take to collect the payments, as you will have handed that over to us. You can spend your time growing your business and focusing on other matters at hand.
Payroll funding is specifically tailored for temporary employment agencies. Here is how it works:
- You send us your weekly employee invoices, timesheets, and payroll summary.
- We then send weekly invoices to your customer(s) that make use of temporary employment labor.
- Your customer remits payment for the invoices that we send to them.
- We send you weekly funding for payroll based on the payments that we receive from your customer.
- Finally, you give your temporary or contracted employees a weekly paycheck. You can do it either in-house or through a specific provider of those services.
Payroll funding offers many advantages that you will be able to make use of immediately. You will feel the burden lifted, especially if you are experiencing a great deal of growth. Where you would normally have to make a choice between completing payroll or hiring more staff to handle the increase in business. With payroll funding, you can do both.
Funding vs Credit
Another huge advantage is the fact that it is far easier to get funding than it is to get credit, grants, or other forms of financial help. Since we are not a bank, many of the stipulations they have in place are not a factor with us. In addition, you will not have any type of collateral or co-sign needed, no application fees or hidden fees, and even work with some less than perfect credit.
Cash from payroll funding can be in your account far sooner than if you were getting a loan. While the time it takes for your money to reach you is determined by your own particular circumstances, it can still be faster than other forms of funding.
It will probably also be very important for you to know that payroll funding in no way incurs any debt. Instead of putting up invoices as collateral against the amount of cash you are receiving, you are simply selling those invoices. On the same token, you can also utilize your track record in payroll funding as a positive influence in later years. That’s if you should find the need to incur debt for some other reason.
There is absolutely no monthly interest to accrue on payroll funding as there is with other types of debt. And there are no limits imposed on the amounts of cash that you will receive. When you borrow money, have a line of credit, or a credit card, you have a capped amount attached to it. End of story. With Payroll funding, however, your finance grows as your business does, with no limits whatsoever. We base the amount of money we send you on the invoices that we buy from you. It’s just that simple.
Contact First Capital For Your Payroll Funding
Payroll Funding For Temp Agencies | First Capital Business Finance, USA