Need Funding for Your Small Business?
Is insufficient cash flow making it difficult to pay your employees? If so, it may be a good idea to consider using staffing factoring or payroll funding instead of a traditional bank loan or line of credit.
Factoring and payroll funding can assist your business in compensating your valued employees for the services they help you provide. Both funding options achieve the same goal: increase cash flow to benefit you and your staff. Additionally, these services can be much easier to obtain than a conventional loan from the bank.
Steps to Invoice Factoring are Simple and Straightforward:
- Once you’re approved and your account is set up, forward the invoices you wish to factor to your invoice factoring company
- You will be paid an advance of up to 90% of the invoice’s value by your factor
- You or your factor will notify your customers that their debts are in the factor’s hands
- When the customer pays back the factor, you will be paid the remainder of the money you and your staff have earned apart from a small service fee
After following these steps, you will be able to use your new capital to help grow your business. The process is fast and easy. Factoring is mutually beneficial for all three parties involved. Your company is compensated quickly, the factor takes a modest fee, and your clientele are free to pay at their own pace. Your credit also does not have a significant effect on approval. Bad credit, no credit, no problem!
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What is the Difference Between Invoice Factoring and Payroll Funding?
While both these services can be majorly beneficial, it can be a difficult choice to make. That is why you are going to want to have as much information on the process and cost as possible. Factoring involves purchasing invoices and advancing cash to allow financial progress and business growth. When your customers are slow to pay their debts, a factoring company will step in to advance you the money so that you can meet all of your expenses, including payroll.
Delinquent receivables can be a drastic hindrance to the effective operation of your business. In some cases, slow debtors can leave you unable to pay your team. If you cannot compensate your employees for their work, then your business ceases to provide quality goods and services.
Factoring your receivables helps ensure that your staff gets paid on time and your operation continues to run smoothly. Both factoring and payroll funding are gifts to business owners. Both help alleviate the stresses that come with being a small business owner. Factor Finders can help your business, employees, and clientele achieve growth and prosperity by helping you factor your receivables to fund your workers’ payroll, payroll taxes, and benefits. Additionally, we will help set you up with a factoring company that specifically suits your industry.
Is Payroll Funding Better than Factoring?
One is not necessarily better than the other. Both methods are esteemed, time-proven ways to fund your company’s needs. But, payroll funding is a specialized type of factoring. Here’s how it works:
- 1- A payroll funding expert will advance cash to you so that you can pay your staff.
- 2- In turn, you will be able to delay payroll expenses, while your employees enjoy the money they earn.
- 3- In due time, you will pay your payroll funding specialist for the services they have provided, in addition to a small fee.
Payroll Funding is Available from Factor Finders in Nearly Every Industry:
- Advance payroll funding for healthcare and/or medical staffing agencies
- Payroll funding for distributors & manufacturers
- Payroll funding for service providers
- Advance payroll funding for staffing firms (temporary and long-term!)
- Advance payroll funding for healthcare providers
- Freight and trucking companies