If you have a temporary staffing company, you understand the importance of maintaining a healthy cash flow for your business. One of the best ways to boost cash flow is to work with a company that offers payroll funding, which is a type of invoice factoring. Let’s look at the top 10 reasons your staffing company should consider payroll funding.
1. Cash Flow Management
Payroll funding can help staffing companies manage their cash flow and ensure they have the funds available to pay their employees on time. With payroll financing, you’ll have predictable cash flow without depending on your clients to pay your invoices on time. You’ll be able to meet all your business expenses more readily.
Compared to other types of financing, it’s quick and easy to obtain payroll funding. This can be especially important for staffing companies that need to pay their employees quickly.
3. Offers More Attractive Terms to Your Clients
Larger companies prefer to pay invoices on their own schedule, which may be 30 or even 60 days. Smaller businesses, however, require faster payments in order to meet payroll. With payroll funding, you can afford to offer clients more competitive terms.
4. Helps Your Overall Financial Situation
Improving your cash flow increases your financial security. It can make it easier to qualify for other types of financing such as loans in the future.
5. No Additional Debt Created
Whereas bank loans or small business loans are a liability and cause interest to accumulate, payroll funding is financing that doesn’t incur debt.
6. Helps You Grow Your Business
When you’re confident you can meet payroll and other business costs, you have more room to expand your business. You may want to invest in additional staff, take on new business, or invest in marketing.
7. The Charges are Straightforward
You are charged a small fee for each transaction with no hidden fees.
8. Funding is Fast
While business loans can take many months to come through, payroll funding can be fulfilled within 24 hours after invoices are received.
9. Offers a Great Deal of Flexibility
Payroll financing is one of your most flexible financing options. You choose which invoices to factor and you can increase your funding as your business grows.
10. Saves Time and Resources
In addition to improving your cash flow, payroll funding can function as your back-office, reviewing credit of your customers, sending invoices, and handling all aspects of collections from your customers.
How Payroll Funding Works
Payroll funding is a simple process. Once you sign up with a factoring company, like Riviera Finance, you simply follow these steps in order to get paid.
- Your business fulfills its services and creates invoices as you normally would.
- You sell your invoices to a payroll funding company.
- You get an advance on the invoices which you can use to cover payroll.
- Your customers pay the payroll funding company.
Why Choose Riviera for Staffing Company Financing?
If you’re looking for financing for your staffing agency, it’s important to choose an experienced and trustworthy company. Riviera Finance has been providing financial solutions to businesses in many industries, including staffing, for more than 50 years. If you want to learn more about how payroll funding can benefit your temporary staffing agency, contact Riviera Finance today.