Choosing the Proper Funding company for your business
Staffing factoring, also known as invoice factoring or invoice financing, payroll funding allows you to sell your accounts receivable for cash to meet payroll for 1099 employees, independent contractors, and other staff. Payroll financing is designed to help your staffing company make payroll before you are paid by your customers.
There are twists and turns in your business cycle, and that your cash flow needs can increase or decrease from month to month. Like it or not, staffing is a negative cash cycle business. Have you ever found yourself in a position where a big business opportunity strikes, but you cannot afford payroll for the temporary workers it would take to complete it? A staffing firm looking to grow should never have to be in a position to turn away big projects when they arise, because that means turning away revenue.
Finding and placing high quality temporary workers who want to work is one of the greatest challenges of your business. But with major talent shortages occurring and expected over many industries. Temporary Staffing as a whole is growing and there is a big pipeline for staffing firms to help fill, especially in healthcare.
Because of the difficulty involved with finding and keeping temporary workers, any barrier could be costing you big. If your current funding source does not give you the flexibility to hire all the help you need, that is money down the drain. It is also important not to lose the good ones you do have by not being able to pay them on time when you are waiting for outstanding invoices. Once you are known for not paying your employee it is difficult to recover from. Word of mouth advertising from staff to staff is free however expensive depending on your reputation.
So, the further you grow, the more money you will need. The Southern Bank Company makes sure business owners like you have access to the funds and working capital you need to pay your temporary employees on time, without strict limits and restrictions.
Funding companies are created for the following, improve your cash flow, get unlimited access to funds at competitive rates. Also, to advance rates of 80 to 90% upfront this should remain hassle free process.
Your bank credit line will cover it and you will receive 80-90% of your accounts receivable or invoice funding within days of submission. What I have learned through trial and error is some fly by night funder’s do not have the resources to help you with the extra back-office support it would take to accomplish it. They tend not to have the reputation of a banking service. Not to mention they will take a higher percentage of your overall revenue. The Funding companies will sell you on security of providing back -off support, onboarding, and workers’ compensation insurance. All of this sounds great; however, you are placing your company’s future in someone else hands. One wrong or missed payroll run can and has collapsed many businesses. As healthcare staffing becomes recession proof lucrative business. You will see more Funding companies developed. It is tempting to believe that funding fraud is something that happens to other businesses, not your own. By putting a few safeguards in place, you will be able to make your company a less appealing target. It is important to research the company record. Call the company not as a new customer but as an existing company, keep a record of your hold time. They will work hard to gain your business however not available to assist you with solutions to your problems. Some Funding companies offering back-office support are known to outsource the back-office task to a third party. This can present a new series of issues and all you needed was the funding. Funding companies also borrow money from banks to fiancé their company, so why not cut out the go-between. You can receive a credit line through The Southern Bank Company and still maintain control of your business. As you grow so does your credit line.
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