What is Payroll Funding?

Temporary staffing agencies have many financial obligations directly connected to running their business. From paying workers’ compensation insurance to marketing service to potential clients, every dollar spent is aimed at keeping the agencies competitively positioned in the industry.

Yet, with all of these expenses, none are as challenging as funding payroll. Ensuring there is enough money to cover payroll and taxes is more important than marketing. Think about it. An agency could host the biggest job fair, add hundreds of candidates to the roster who are skilled to fill client positions.

However, if the staffing agency is unable to pay their associates on time, those highly skilled candidates will go to the competitor that does not have cash flow problems. This presents a challenge for staffing agencies who typically pay associates and vendors weekly. The problem is clients can take 30, 45 or in some cases, 90 days to pay invoices.

[…]

What is Payroll Factoring?

No matter what type of business you run, the chances are very good that you have employees to pay on a regular schedule. Business owners are always focused on their company’s cash flow, especially when it gets close to the time to make the payroll deposit. If the money’s not there to make payroll, then there can be problems.

The possibility of missing payroll is made even more frustrating by the pile of outstanding invoices sitting on your desk just waiting to add to your cash flow. Those invoices represent the hard work your sales team has done to bring in revenue, but you don’t know how to use those invoices to your advantage until they are paid. This is a good time to introduce you to the concept of payroll factoring.

[…]

What to Look for in a Payroll Factoring Partner

What to Look for in a Payroll Factoring Partner

The wait for customers to pay invoices is frustrating for any business. The frustration grows exponentially for the temporary staffing agency that depends on payment to meet weekly payroll expenses. Providing workers to customers is at the heart of the agency; the inability to pay workers equates to the inability to satisfy customer requests.

This catch 22 situation is easily resolved when the staffing agency partners with a payroll factoring company. Using this type of service helps to keep the cash flow steady without taking on more debt to pay expenses.

[…]

A Diversity Frontier in Staffing Procurement

General information on a long term business loan

The cost of opening and operating a new business can climb faster than you ever thought possible. Those costs include both operating costs like finding a warehouse or office and paying for utilities and costs associated with building up your inventory and advertising products to potential customers. One thing you may not think about is payroll funding. Until your company starts turning a profit, you may need to pay out of pocket for the paychecks that your workers get. With a long term business loan from Flexible Funding, you can now get the cash that you need to cover those checks without spending your own money or taking away from your profits. […]

5 ways to set new employee salaries

Before applying for payroll funding from Flexible Fund, we recommend setting your employee salaries based on particular criteria. Determining employee’s pay levels is something you should do while creating a new company’s business plan. […]

Better manage financial stress as a small business owner

As a small business owner, you may feel a good deal of financial stress at all the fees, surcharges, and taxes added on by other companies. At Flexible Funding, we do not charge you fees that other companies charge you. We believe in providing you with service that benefits you. For instance, you will never have to pay funding startup fees, prepayment penalties or equivalents, due diligence fees, finance application frees, liquidated damages for early termination, administration fees, base fees or charges for credit reports. […]

General Information on Short Term Business Loans

The key to the success of a business is the happiness and satisfaction of employees. If you cannot cover the cost of the paychecks that your employees receive, you risk alienating those workers and causing them to look elsewhere for work. How would you feel if a customer placed a large order with you, promised payment on delivery and then took that order without paying you? That is exactly how your workers feel when you cannot cover their paychecks. At Flexible Funding, we offer a payroll and short term business loan just right for business owners facing financial hardships like yourself. […]

Is a Long Term or Short Term Loan Best for Your Company

Payroll Funding: How We Can Help

One of the most difficult and challenging aspects of contract staffing from a recruiter’s perspective is funding the payroll. As a contract staffing firm, the employer of the contractors, you are required to pay the contractors before you are paid by the client. Usually you pay your contractors on a weekly basis or at least every other week, but it could take 30 to 90 days before the client pays you. […]