100% Payroll Financing for Your Staffing Business
Is it Time to Pay your Staff and your checking account is empty because of unpaid invoices? 100% payroll financing is the working capital answer to your small business needs.
As a company with B2B or B2G sales; a startup staffing company advanced 100% payroll funding through Non-Recourse Invoice Factoring. They are turning your invoices into cash as immediately as possible. This funding solution for any types of company, including staffing is available for accelerated growth.
What is Payroll Funding?
Payroll funding or payroll financing/ factoring is when any staffing or temp agency is studying to raise capital instantly for their day to day operations. Also, Payroll funding is an efficient method to keep any new small startup or staffing company in positive cash flow. When looking to fund your business, you must look for a factoring company that provides the lowest rates.
How Does Payroll Funding Work?
The process of payroll funding for staffing companies is fast and straightforward. The open invoices with your creditworthy B2B or B2G clients are sold to a factoring company. Thus, the factoring company will give you 90% of the invoice’s face value after verifying your customer is satisfied with your services.
When your customer pays the factoring company’s lockbox, you will receive the outstanding 10% minus the factoring fee for A/R management, credit protection, and working capital. No more waiting of 30-90 days for your clients to pay.
An Example of Payroll Funding
Payroll is every alternate Friday for your company. Your company has sent invoices to your clients and gave them 60 days to pay (net 60-day selling terms). Like many new staffing companies, you need the capital tied up in your open A/R (unpaid invoices) to pay your employees and other significant bills.
With staffing 100% payroll funding, you will not have to worry about slow-paying customers. You sell your client’s invoice to your factoring company; your agency gets the money to pay your employees. Also, we, as your factoring company, takes the credit risk.
What Are The Benefits of Payroll Financing For Staffing Companies?
- Save time: As the saying goes, “Time is money.” Waiting 30 to 90 days to be paid for open invoices can kill growth. Factoring allows you to get your invoices paid in just a few days!
- Grow your staffing company: Positive cash flow is vital to keep your small business firm growing. A factoring company can help you do just that with 100% payroll funding. You will be assured you have the capital available to fund your growing business.
- Fund your starting or temp agency without debt: Payroll financing is not a loan and is not considered debt. Non-Recourse Invoice Factoring will fund your staffing or temp agency without the hassle of high-interest rate loan payments.
- Factoring provides continuous cash flow to your agency: There is no limit to the amount of capital you can acquire through factoring. The more invoices your agency sends, the more money your agency will receive. We provide unlimited working capital based on your ability to sell.
- Zero credit risk: In Non-Recourse Invoice Factoring, the factoring company takes the credit risk. We will pre-approve your prospect list so no wasting time on deadbeat prospects — no ownership dilution versus selling a percentage of your company and diluting your equity. Besides, you keep 100% ownership; enjoy credit protection, A/R management, and unlimited working capital for giving up 1-3% of your sales.
Who can Benefit From Non-Recourse Invoice Factoring?
Any company with B2B or B2G sales can enjoy accelerated working capital through 100% Payroll Financing. We serve companies in Technology, Healthcare, Construction, Distribution, Manufacturing, Oil Services, Staffing, and Temp Agency; many more can avail themselves of 100% payroll funding. Moreover, if you are a firm that has clients with a decent credit history, then payroll factoring can benefit. Also, for a small business that is sick of loan payments, doesn’t want to be saddled with debt, let payroll financing be your solution. Payroll Financing is an excellent help for business which has slow-paying clients. Also, this gives money immediately making it an extra advantage to staffing businesses that need cash the same day.
How much does Payroll Financing Cost?
Funding can be a great asset to your company. Also, it is essential to know what is financing cost so that you can keep your small business efficiently growing. Rates are based on your monthly factoring volume and can run from 1.25% ($1,000,000 per month) to 2.25% ($40,00 per month) per 30-days with a 90% advance rate for staffing companies. These are the most competitive rates in the industry and just what your staffing or temp agency needs.
ARFunding.org is here to help staffing companies, and new startup agencies with their payroll financing need. We are ready to provide you with the money you need to keep your business running. We’ll get you the money you need with 100% payroll funding in as little as a couple of days. ARFunding.org commits to providing you with quick financing with the lowest rates in the industry. We are excited to be your next and only financing partner.