What is Payroll Factoring?
No matter what type of business you run, the chances are very good that you have employees to pay on a regular schedule. Business owners are always focused on their company’s cash flow, especially when it gets close to the time to make the payroll deposit. If the money’s not there to make payroll, then there can be problems.
The possibility of missing payroll is made even more frustrating by the pile of outstanding invoices sitting on your desk just waiting to add to your cash flow. Those invoices represent the hard work your sales team has done to bring in revenue, but you don’t know how to use those invoices to your advantage until they are paid. This is a good time to introduce you to the concept of payroll factoring.
How does Payroll Factoring work?
Payroll Factoring is a process we use to turn your outstanding invoices into the cash you need to make payroll each and every pay period. We are a factoring company, and we want to show you how you can fund your business without taking on the additional debt that is created by using constant bank loans to meet your financial obligations.
When we set up a payroll factoring program for your business, we use your outstanding invoices as the collateral you need to keep your cash flow moving. We don’t put your company through a credit check because we are more interested in the creditworthiness of your customers. Once everything checks out, we set up your account in a matter of a few days and then we start advancing you cash based on the value of your invoices.
What Is The Catch?
We are not a bank, so we are not offering you a loan. Since you are not taking on a loan, you are not adding extra debt to your company’s finances. We advance you an amount of money based on a percentage of your outstanding invoices, and you use that money to meet your payroll obligations. Our fees come out of your invoices, which means that you don’t have to pay anything extra for our service. There is no catch, and there are no extra hidden fees to worry about.
What Happens To My Invoices?
You submit each invoice you get to us, and we go ahead and process your advance. We work with you to set up a seamless system where you invoice your customers and then submit those invoices to us. When it comes time for your customers to pay their invoices, they pay us and we subtract our fee and the amount we have already advanced you. If there is a balance left, then we give that balance to you.
Why Would I Need Factoring?
We can help any business to meet their payroll obligations and keep their business running smoothly. We feel that factoring is the right solution for any business that has a healthy flow of invoices, but their cash flow is lacking because of customers who take a few days to pay. But there are some situations where factoring could be the best way for you to meet payroll.
If you already have too much bank loan debt on your books, then we can make sure that you don’t have to take on any more debt to meet your payroll obligations. If your company has been having difficult financial times lately and your credit score is not what it used to be, then we can help because we don’t care about your credit score. If your company has had some tax liens recently or even come out of bankruptcy, we have the solution you need to meet your payroll.
What Is My Obligation To The Factoring Company?
If you feel as though you don’t need our services for a while, then just let us know. All of your fees and advances are paid by your invoices, so you have no lingering financial obligations to us in any way. When you feel like your cash flow is under control, then let us know and we can stop collecting your invoices. If there comes a time when you feel like you need us again, then we can just start the process up again and get your cash flow moving.
Call Us For Details
The great thing about our factoring service is that you are never under any obligation to do anything. We invite you to give us a call and ask us all the questions you want about our payroll factoring service and how it can help your business. If you don’t feel that it is for you, then we thank you for your call. If the service sounds like just what you need, then we can get you started right away.
Factoring does not require a credit check, an extended obligation or any extra fees. Our service is straightforward, and we can help you to make your payroll deposits on time each pay period. Call us for more details and find out how factoring can help you to keep your business running smoothly and your employees happy.