Payroll Funding

If your business is growing at a faster rate than your operating capital and you’ve exhausted all your efforts at the bank, consider making use of payroll funding. The service of payroll funding provides financial resources and other services that independent companies need to remain competitive. Payroll firms give financial stability to meet payroll needs of companies, regardless of the size of their payroll.

Their funding is usually collateralized by accounts receivable, which means that personal assets are not involved in the arrangement. That gives you immediate access to a source of payroll funds for unlimited profitability and growth.

Payroll funding programs work like an invisible bank, and the line of credit is secured on invoices or accounts receivables. This means that you can only withdraw the amount you need, when you need it. You don’t need to pay anything if you choose not to use the line, and the fees lower as volume increases. More importantly, this whole system remains invisible to your customers. All invoices and accounting are done with your business name, allowing you to retain your client and your healthy relations with them.

All sorts of industries are eligible to receive this financial service. Included among them are manufacturers, distributors, independent recruiters who are interested in complementing their permanent business with income from temporary placements, medium-sized firms who opt to have outsource payroll processing due to financial limitations, and large firms who need another company to be the employer of records in areas where they need to make temporary placements but are not registered to do so.

Other firms that make use of payroll funding are small start-ups with no financial backing to rely on, companies with seasonal sales patterns, and fast-growing companies who have a sale history that won’t justify their need to increase their loans to acquire more raw materials and supplies.

Even if you’ve got a bad credit history, you don’t need to worry because payroll firms generally accept those who bad credit records. They also do not require a minimum amount of business nor ask that they be used as a sole provider of payroll services.

Acquire the services of a payroll firm so that they can take care of your back-office needs, which will give you more time to focus on making your company grow without having to worry about cash flow.