The Payroll Challenge
Have you ever thought… Can I meet my next payroll?
Making payroll can be difficult even for highly profitable businesses. Long payment terms on customer contracts or starting a new large project can mean you have to scale up and recruit fast. In both cases, cash flow can quickly become tight.
Business owners have to pay their workers every week or every other week – payroll cannot be skipped or delayed. However, customers don’t always pay on time and even if they do, there is still a wait time of a month or two for the payment depending on the agreed to terms.
Simply doing the math, if you do payroll weekly and you offer your customers 30-day payment terms on your invoices, this means you have to keep enough money to cover 4 to 5 payrolls before you can get paid for the placements you recruited.
How Payroll Factoring Works
Payroll is one of, if not the biggest responsibility of a business owner. As a recruitment agency, you need to pay workers while waiting on your invoices to be paid by your clients. All while managing the day-to-day running of back-office administration. With Recruitment Finance, you release the cash tied up in unpaid invoices by receiving a cash advance from your funder.
Step #1: Invoice your customers - Send us a copy
Step #2: We pay up to 92% of the value of your invoice
Step #3: We collect payment
Step #4: We pay you any remaining balances - minus any agreed fees
Payroll Factoring allows your business to finance invoices and assets so you can make payroll for your employees. Simply put, you get the finances to ensure you make payroll, have more time to recruit talent and get the capital to invest in assets for growth.
Download our infographic on 'How Payroll Factoring Can Help Your Business' here.
When should you consider Payroll Factoring?
- You are a staffing agency and want to ensure that you have enough funds for payroll
- You want to reduce costs by outsourcing timesheet management
- You issue your clients credit terms of up to 90 days
- You want to employ workers/ contractors throughout US & Canada but don't want to deal with the complexities of local state and province employment laws?
What can you get accomplished with Recruitment Finance?
- You can protect your businesses savings by using invoice factoring for payroll instead of your savings for working capital
- Avoid more debt by releasing cash tied up in unpaid invoices
- Recruit & retain skilled and talented staff
- Avoid lawsuits/ penalties by having compliance and tax support
- More time to focus on recruiting and growing your business
If you have any questions or concerns regarding our Recruitment Finance offering, please email email@example.com or call (877) 882-4229.