Payroll funding advice for staffing companies and agencies
One of the biggest challenges for a start up staffing company is keeping up with payroll as growth increases rapidly. You may find yourself in a situation where your clients may not be paying their invoices for up to 90 days after invoicing; and during that time, you have other expenses that pile up such as business bills and salaries. That’s when payroll funding can help with those cash flow issues by advancing a percentage of your unpaid invoices immediately.
Bringing on Bigger and Better Clients
Payroll funding can help grow your business or staffing company by allowing you to take on new opportunities. As you grow, you will want to take on larger clients and most of the time these clients will pay you only after a certain period of time has passed after invoicing. This can cause a strain on your cash flow because now you have an increase in payroll obligations. Payroll Funding helps to ensure that no matter how many new clients you bring on or contractors you place, you will be able to sustain any rapid increase in payroll obligations.
Spend Less Time Invoicing and More Time Recruiting
Payroll Funding allows your staffing company or agency to centralize your invoicing process. Instead of spending time sending invoices to all your different clients, you are able to send your invoices directly to OTR and we have the ability turn around and invoice your clients on your behalf. OTR Capital provides you with a dedicated operations team to take on this task, this allows you to focus more of your time on what you really want to do; which is recruiting more contractors and bringing on more clients.
Payroll Funding Does Not Incur Any Debt
When you use payroll funding, you are not taking on any debt. Payroll Funding does not work like a loan or line of credit. It just provides your staffing company with the capital it was already due to receive, just immediately.
Payroll Funding allows your staffing company to have the piece of mind of financial security. You and your customers will know that you will always be able to pay your employees, keep up with any business bills, and continue to grow your infrastructure. Other than being able to maintain a steady stream of capital, this allows you to keep an accurate accounting of your finances. You no longer have to predict when a certain invoice may get paid, which allows you to keep a predictable and steady budget.
Bringing on bigger and better clients, spending less time invoicing and more time recruiting, remaining debt free, and having the piece of mind of financial security are all ways that payroll funding with OTR Capital can help grow your staffing company.
For more details on our program view Paymint.