Payroll Funding
What is Payroll Funding?
A unique type of invoice factoring called payroll funding is specifically customized for staffing firms that employ temporary and contract workers. Your responsibility is simply to submit the weekly invoices, time sheets and payroll summary to the factoring company, and in turn, they provide the weekly funding to cover your employees paychecks. Not only can you receive payroll financing, but you can also receive capital for other expenses of running your business. Essentially, the factoring company purchases your outstanding receivables and advances you the cash you need for your business.
Factoring vs Banking
Payroll funding companies make it easy your company to be approved for payroll finance is easy when going through a factoring company. Whereas bank financing is determined by your credit, payroll financing is determined by your customers’ credit. Unlike a bank loan, payroll financing gives you the maximum cash flow without the hassle of incurring debt. Factoring is an excellent and flexible financing tool for many types of businesses.
Benefits of Financing Payroll Using Factoring
There are immense benefits that come with payroll funding, including:
- Advances rates up to 95% upfront
- Weekly electronic funds transfers (EFT)
- Accounts receivable and collections management
- Funding for payroll is available for a variety of businesses
- The amount of available working capital grows with your business
- Affordable
- No long term contract
Need Money for Payroll? Contact us Now! 844-299-3206
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