Authored by Phil Cohen
Times where cash is short can be difficult for business owners. Without regular cash flow, it can be challenging to run and grow your business. Payroll funding can help provide stability by giving access to money you have already earned. Meet payroll every time by utilizing payroll funding.
What is Payroll Funding?
Payroll funding is when a business sells its unpaid invoices to a factoring company. A cash advance to the business up to 90% of the value of the invoices will be paid out by the factor, with the rest of the money being deposited into a reserve account. The factor will take over collecting payments from clients. After all of the clients have paid, the remaining money will be released to the business, minus a small factoring fee. It is important to partner with a factor that understands your industry. A factoring broker, such as Factor Finders, can help match you with the perfect factor. We have over 75 factors in our network, so we are sure to find the right factoring company for your business.
Benefits of Payroll Funding
There are several advantages to payroll funding. The most notable benefit is that it provides stability with enhanced cash flow. No more will you have to wait weeks for client payments to have access to your cash. Most businesses are approved in 3-5 days. You will receive your cash within 24 hours after approval. With payroll funding, you will have sufficient funds to meet payroll obligations to pay your employees on time. There will be more flexibility with cash flow management thanks to payroll funding. You can factor one or all invoices to fit your needs for each payroll cycle. Since it is using the money you already earned, factoring is debt-free and it does not involve paying interest like a traditional bank loan. The application process is simple and straightforward with no credit checks. If you have less-than-ideal credit, have been denied a traditional loan in the past or are a startup, you can still qualify for factoring.
Factor Finders Can Help
If you are ready to start payroll funding, Factor Finders can help. Contact us today to get started. We will respond within minutes to connect you with a factoring company that is the right fit for you.