Payroll Factoring Services
Regardless of whether or not a business’s cash flow is in a good place, it still has to pay its staff. What do you do when payday is approaching, you have plenty of invoices awaiting payment, and you are worried that your current cash flow won’t cover the salary bill? Payroll factoring is an easy and effective way to bridge that gap and get your team paid on time.
There are several benefits to payroll factoring, including:
Fast Access to Working Capital
Payroll factoring frees up funds tied up in your accounts receivables quickly, allowing businesses to meet their payroll and other running expenses on time. All you have to do is sell your receivable invoices to a factoring company, which will then advance a large percentage of the total face value to you and collect the outstanding amounts from your clients as they fall due. Once payment is collected, and the factoring service has taken its fee, the remainder will be paid to you.
The only thing less flexible than cash flow restrictions are the terms involved with acquiring and repaying a loan from a traditional banking institution. There are several hoops to jump through, and you still may not get the loan you seek, leaving you back where you started. If you do get the loan approved, you are saddled with debt that you will need to repay at a specific rate over a fixed period.
A payroll factoring service is exactly the opposite. You get flexible terms and options that suit your needs and capacities and don’t incur any debt.
Simplified Payroll Process
A payroll factoring service makes it easier to process your monthly payroll by ensuring that the funds are available and helping you to handle payments and payroll-related expenses with less fuss and stress.
Professional Management of Accounts
A payroll factoring service provides a fast financial solution and lets you let go of some of the administrative burdens involved with running your company. It can provide professional management of accounts, including the handling of invoices and collections, which can reduce the administrative burden for businesses.
Enhanced Cash Flow
A payroll factoring service can help to improve cash flow for businesses by providing fast access to funds and streamlined payment processes. This can help businesses to focus on other important aspects of their operations and support their growth and development.
Contact us for a payroll factoring rate quote.