As of this writing, on a weekly average, there are more than three million employees that work on a contract or temporary basis for staffing agencies. That is why it is crucial for every staffing agency to have access to cash flow that is steady. One of the major issues of having this kind of business is waiting for your customers to pay you. Even a seven-day wait can be a major issue for these agencies. Once the time comes for these agencies to provide for their weekly payroll, they often end up falling short on their cash.
If you are part of the staffing industry, a working capital is vital so that you can meet your business obligations and payroll deadlines. Without enough working capital, your staffing business will never grow significantly and meet more opportunities. Going to companies offering payroll funding assistance may be the best step that you can take if your staffing agency always falls short on cash. When you tap into the services of professional payroll funding companies, they will deal with meeting your payroll requirements while you can focus on growing your business.
Prior to seeking professional help for payroll funding, you have to know how the whole thing works. For staffing agency owners, the main thing that you should meet will be payroll. That is why you have many options when it comes to payroll funding. If you look hard enough, you will come across companies that provide you with personalized programs for your payroll needs. Read more here to know how payroll funding works.
What happens with payroll funding services is that instead of your invoices going to your customers and waiting for them to make payment, you will directly send them to your payroll funding company. It will be up to the payroll funding company to give you an advance on your invoice totals on a similar day. Within 24 hours, they will be depositing the fund directly into your bank account. By the time your customer pays their invoice, you will be getting what remains from the invoice amount minus the transaction fee.
By choosing your payroll funding service provider right, you can expect to pay lower rates, which even goes lower when your staffing business expands.
Getting payroll funding benefits you in more ways than one than just steady cash flow. For starters, you gain confidence in meeting your weekly payroll requirements. You get to save more time too when you choose to get payroll funding services. Some of these companies help streamline your collection and invoicing processes. To enjoy time-saving benefits, make sure to choose a payroll funding company that offers back-office support. Some examples of these services include collections, accounts-receivable management, risk assessment, credit analysis, and treasury services.
Lastly, seeking payroll funding services enables your staffing agency to grow. Through their help, you can now readily accept new contracts.