7 Benefits of Payroll Funding

Payroll Funding Helps More Than Cash Flow

The staffing industry makes a vital contribution to the US economy, servicing businesses across virtually all industries.  According to the American Staffing Association, more than three million temporary and contract employees work for America’s staffing agencies during an average week.

Having access to steady cash flow is crucial for staffing agencies. One of the most common problems for staffing agencies is waiting for customer payment, even if it is only a seven-day wait. When it comes time to make weekly payroll, many agencies find that they are short on cash.

In an industry that thrives on securing new contracts, if you don’t have the working capital you need to meet payroll deadlines and other business obligations, you can miss out on substantial growth opportunities. That’s why we provide payroll funding to agencies like yours: with the ability to meet payroll, you can focus on growing your agency.

How Does Payroll Funding Work?

As an agency, one of your top concerns is the ability to meet payroll. That’s why we have customized programs designed to meet your payroll needs, and much more. Here’s how it works:

1. Instead of sending your invoices to your customers and waiting for payment, send them directly to a payroll funding company like Scale Funding.
2. We provide a same-day advance, typically 90% of the total of your invoices, deposited into your bank account within 24 hours.
4. Once your customer pays the invoice, you receive the remaining amount of the invoice, less a fee. We understand that margins are tight for staffing agencies, and that’s why we offer low rates that decrease as you grow.

But it is not just cash flow that you receive when you partner with Scale Funding- there is much more. Let’s take a look at the top seven benefits of payroll funding.

But it is not just cash flow that you receive when you partner with Scale Funding- there is much more. Let’s look at the top seven benefits of payroll funding.

7 Benefits of Payroll Funding

1. Provides Consistent Cash Flow

Without payroll funding, it can be hard to know when payment will arrive. Eliminate the worry and have the peace of mind knowing that payroll will be met each week.

2. Saves You Time

Some factoring companies offer services to help your staffing agency streamline your invoicing and collection processes. Scale Funding offers a spectrum of back-office support services to clients, such as accounts receivable management, collections, credit analysis, risk assessment, and treasury services.

3. Allows You to Grow

Payroll funding gives you the confidence to pursue new contracts, expand your business into additional markets and hire.

4. Does Not Add Debt to Your Balance Sheet

Unlike bank loans, payroll funding does not create debt on your balance sheet. Instead, it’s debt-free financing that grows as you grow.

5. Helps Pay Your Bills on Time

Since you won’t be waiting for customer payment, paying down bills is less of a struggle. Even creating a rainy-day fund is possible when you can count on your consistent cash flow.

6. Allows you to Invest in Your Business

With the working capital from payroll funding, you can invest in technology and tools to run your business more efficiently.

7. Gives Your Staffing Agency Financial Security

Payroll funding gives you the confidence that you’ll have enough working capital to pay your employees, bills and even grow your staffing agency. The fear of a negative cash-flow statement due to slow-paying customers is alleviated because you’ll be paid on your invoices right away.

When you partner with Scale Funding, you receive not only funding to meet your payroll with confidence, but a multitude of services designed to strengthen the entire operations of your agency. Contact us to learn more about the Scale Funding difference.

Want to Receive Industry Updates in Your Inbox? Sign up Below.