As a recruiter, covering payroll is one of your biggest concerns. Waiting for clients to pay you while still having to cover your weekly payroll can be stressful. Therefore, it’s important you have access to money when you need it. Find out how payroll funding can help with your recruiting business.
Because your clients may pay you in 30-60 days, and you may have to make weekly payroll four to eight times before new clients pay their first invoice, you face an increased risk of not funding your payroll. As a result of financial strain, you may not establish strong relationships with new clients, and you may face difficulty securing employees.
Payroll funding ensures you have access to money when you need it. You’re able to pay your employees on time, every time, because you have the financial resources in place.
Frees Up Assets
As a recruiter, especially if you’re new to the industry, you may not have the professional credibility you need for securing a bank loan. Banks often look at credit history and other performance metrics when deciding whether to extend credit. This may be difficult for your business, since new opportunities typically require additional working capital.
A payroll funding company offers more flexibility in extending credit. For example, the company considers your client’s credit score rather than your company’s. Also, because funding is scalable with your business growth, the better you perform, the greater extension of funds you receive. In addition, rather than filling out lengthy applications and providing extensive documentation for loan repayment, you simply provide lien-free invoices from creditworthy clients.
Covers Unexpected Expenses
Since unexpected expenses may arise at any time, having flexibility for covering your payroll frees up money for those expenses. For example, with health insurance premiums on the rise, you’re paying more for employee benefits. Also, if minimum wage increases, so will the amount of money you pay your employees.
With payroll funding, you receive most of your invoice amounts in advance so you have money to cover your payroll. This allows you to continue operations while ensuring your payroll and debts are covered on time.
Ensures Employees Get Paid
You have a legal obligation to pay your employees accurately and on time. Failure to do so may result in fines, penalties and expensive lawsuits. You may also end up losing your business license and your company.
Payroll funding helps you pay your employees efficiently. They’ll remain productive and continue bringing in money for your business.
Partner With a Leader in Back-Office Solutions
Consider using payroll funding to help grow your recruiting business. For additional information, contact USA Staffing Services today to work with a leader in back office support services!