Top 3 Reasons Staffing Agencies Need Payroll Funding
When you own or operate a staffing agency, you have a lot of things to worry about: finding the right people, working with good companies, invoicing for and receiving payment, and a myriad of other concerns. The last thing you need to worry about is your ability to pay the employees you place with your clients. That’s where Payroll Funding comes in. Other industries can take advantage of a number of Strategies for Paying Payroll, but staffing agencies, by their very nature, are limited to a few options: tie up your working capital in payroll payments, dip into your own wallet until invoices are paid, or utilize payroll funding. We’ve put together the top three reasons why we think your staffing agency needs to be using payroll funding.
1. Bridge the Gap Between Payroll and Client Payments
Due to the payment structure of staffing agencies, there is a gap between getting a job contract and processing payment. This gap in your payment structure generally ranges ranges anywhere from 30 to 90 days and can cause difficulties in paying employees in a timely manner. While your agency is waiting for invoices to be paid, you still need to be able to pay your employees. By utilizing payroll funding, you are able to bridge that gap and make sure your employees get paid.
2. Find Financial Flexibility During Busy and Lean Times
The ebbs and flows of client demand create payroll needs that aren’t constant. The changes in payroll needs caused by both busy and lean times, combined with the payment gap we already mentioned, can cause difficulties in meeting your payroll obligations. Payroll funding can be ramped up or scaled back during busy and lean times in order to meet your current payroll needs, whatever they may be.
3. Make Your Payroll — Every Time
For a staffing agency, a good reputation can mean the difference between attracting good applicants and only attracting desperate applicants. And one of the key aspects of building a solid reputation for your agency is to make sure that you are able to pay employees — in full, every time. Even one instance of missed payroll can create negative word-of-mouth that can have a detrimental effect on your ability to attract strong, qualified people. By utilizing payroll funding, you can make sure that you are able to pay your employees every pay day.
Here at Flexible Funding, we have a lot of experience working with staffing agencies to help them meet their payroll obligations. Because of this experience, we understand the difficulties you face in running your business. We know that not every agency needs our services, but we want you to be prepared in case you should end up needing payroll funding help. We encourage you to Contact Us Today to learn more about payroll funding and how it can benefit your staffing agency.