11 June How Staffing Agencies Can Benefit from Payroll Financing?
Operating a staffing agency means you understand the need for consistent cash flow. A steady income for your employees is one of the ways to ensure their long-term commitment to your agency. Failure to sustain a stable payment pattern means employees might head over to another firm. Staffing agencies need more attention paid to marketing or promotions than chasing clients over unpaid bills. Payroll financing (or accounts receivables financing) support business growth by intuitively helping you channel your resources to more profitable ventures.
Getting bank loans poses a series of protocols that can be daunting. From requesting for collateral like houses and equipment to checking if your business scale qualifies for a loan, payroll financing cuts out the red tape and grants you the loan your business needs without fear of compounding extra debts or hidden fees. Your business operates best when there is enough revenue. Payroll financing ensures you have just enough to keep business running even while customers are yet to pay.
Staffing or employment agencies need to gain a broader client base by reaching out to more customers using marketing. When such a business experiences inadequate funding due to poor return of revenue, it keeps the business far behind the competition, thereby stunting its growth and outreach. But when you have your invoices financed, you get the capital you need to tap into more considerable potentials. That is why you need to subscribe to an payroll financing facility now.
Consequently, this eases the clients of the stress or tension that follows paying up. And your relationship with clients is further strengthened.
QUICK STEPS TO PAYROLL FINANCING FOR STAFFING
Now that you are aware of the benefits of payroll financing, it is essential to know the vital steps to payroll financing for your staffing agency. There are four necessary steps. They are outlined as follow:
- You provide services to your customers: Your staffers must perform your regular services as per your arrangement with the customer
- You charge your customer with your regular invoice.
- You sell your invoices to payroll financier, who advances 90% payment to your staffing company within an agreed time. You use the money you receive for whatever needs your business has.
- We will follow-up and collect payment from your clients.
- When the payment of the invoice is received by payroll financier, we remit the remaining balance, less a small fee, to you.
In a nutshell, payroll financing facilities offer an immediate response in granting loans, give a stress-free procedure for acquiring such loans, and prove to be better than traditional finance methods. Qualification for such loans has never been faster and easier. This is so because payroll financing companies ensure that your agency deals with clients who are capable of paying back as at when due. If you are a small or medium staffing agency owner, payroll financing grants your business an opportunity for fast and steady growth due to the proper influx of cash. Get your agency waxing stronger by simply applying for payroll financing.