![]() ![]() The cost of the financing your payroll with USA will range from 2-to-4 percent depending on the services you request. An efficient payroll funding company will save your staffing firm time and stress while allowing you to focus on running your business and focusing on personal relationships. ![]() Fully Understanding Payroll FundingĪ payroll funding company won’t provide the services for free, but the expense for using them is worth the services they provide. Also, your personal assets are never touched through payroll funding, another large benefit for you. The funder will look at your clients’ credit rather than your company’s, which may be beneficial if you’re a small startup. You cover the 30- to 60-day gap between getting a job contract and being paid for it, which creates happy employees and clients who are paid on time. You have financial flexibility and are monetarily covered during times of low client demand. You have the security of a financial cushion and can financially handle a short-term imbalance with income and debt. You have access to working capital and more control over your company’s cash flow, which helps grow your business. Your staffing business is relieved of the hassles involved in those activities while retaining control over the process. In this case USA can directly manage the entire process and utilize funding for payroll and for advancing profit to you prior to the client paying. We have a second option where you as an entrepreneur and small business owner can utilize USA Staffing as your complete back-office partner and we create a uniform approach with your client to show that you are interested in providing the best customer service possible by outsourcing your back-office operations. This traditional factoring model is great for government contracts or large invoices where you may already have a payroll company running your payroll. We do have a traditional factoring operation where you can simply send us the invoices you would like us to purchase and we can process them and send you 80 percent of the value of the invoice. With a full-service back-office and funding company like USA, we have created multiple opportunities to help fund your payroll while at the same time ensuring a smooth operation for your business. In regards to the lending process you can attempt to obtain a line of credit from the bank and then use this line of credit to fund your payroll, however these have been difficult to obtain for small firms who need to ensure 60 days of payroll before the clients pay the invoice. The funding company then collects the invoice payments. You receive invoice money immediately to cover your payroll and client payments. The funding company pays you a percentage of the face value for each invoice after it’s sent to your client. Factoring lets you sell your invoices for instant cash. Payroll funding is loosely defined as either a factoring process or a lending process. Payroll funding through the use of factoring your invoices and/or the use of a back office company like USA Staffing to manage the process may be the immediate answer to your cash flow needs What Payroll Funding Is However, you’re probably struggling with freeing up the money you need right now. As you know, the more capital you have to invest in your staffing firm, the faster you can grow your business. ![]()
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