Access to funds is critical to any business, particularly temporary staffing firms. A staffing company puts people to work, pays temps and taxes, yet still needs to wait about 30 to 120 days to receive payments.
Therefore, the need to have working capital is high to cover the gaps in business. The staffing agencies need constant cash flow as they wait for their customers' payments. These funds help add more temps, grow the business, and cover unexpected expenses. It is not an understatement to say that a staffing company's working capital is essential to boost its success.
Most staffing agencies turn to reliable payroll funding to get finances and boost their operations. It is a unique finance option tailored to staffing firms requiring working capital. The cash they get is the primary benefit but, there are more perks in payroll funding. Find the top benefits here.
Gives You More Flexibility with Your Cash Flow
Flexibility is arguably the biggest benefit that staffing agencies get when using payroll funding. Working capital in staffing can decrease or increase dramatically due to the business's nature and changing atmosphere. Therefore, working with a bank or your own money makes it challenging to finance the operations.
Payroll funding gives you the flexibility to scale up or down as you require. It focuses on the volume and unique business needs. Also, when you don't have payroll funding, businesses cannot estimate when they will get funds. So it enables you to have confidence in your operations and ensure you meet ensures each week.
Take On More Customers
Payroll funding is not a way to drive your business but will enable your growth by offering opportunities to get more customers. You free the business from administrative tasks to focus more on revenue-driving operations. It is easier to accept a new contract for your business. Also, the financing coming from the factoring company will grow with more customers in your agency.
You get finances that you can scale the way you want. Delays from payments affect your cash flow and the productivity of your staff to accept new contracts. Payroll financing will boost these processes, and you can quickly fulfill orders from new clients.
Get a Better Rate than a Bank Loan
Payroll funding is easier to get than any other type of financing. For example, factoring is a type of payroll financing that focuses on the creditworthiness of your clients. It is easy to get them as long as there are unpaid invoices that you can sell.
These companies don't require any lengthy underwriting processes that you would need with banks. Their rates are better and suit any small and midsize business that doesn't meet basic leading requirements.
Also, payroll funding is not a loan. There is no additional debt that you will add to the balance sheet by getting funding this way. You can build a more robust credit profile that you can use to negotiate rents, equipment purchases, and other business expenditures.
Offers Financial Security
With payroll funding, you are always confident that you have enough working capital to pay employees and fund your business operations. The cash flow is also steady to keep up with bills and growing business. Also, you receive your invoice payments every day, so you don't have to wait for too long.
Payroll funding is an ideal solution for any staffing agency growing exponentially and needing to cover its staffing costs. The solutions work best when you operate with creditworthy clients.
With steady cash flow, you can streamline your operations and ensure you meet your agency goals. Contact us at Crown Financial, LLC, to apply for factoring and enjoy the best rates in the market.