Your employees are the lifeblood of what you do … and making sure they are paid on time is crucial. When cash flow wanes, obtaining payroll funding can help. If your business is seasonal, you’re going through a period of transition, or you’ve hit a rough patch, finding the money to make weekly, bi-weekly, or even monthly payroll can be difficult. And if you are a staffing company, your employees are your commodity, and payroll is even more important.
Many Types Of Payroll Funding
Accounts receivable financing, factoring, and asset-based lending are all solutions that can help a cash deficit that results from paying employees weekly and waiting several weeks for payment from your customers making it tough to fund payroll. These financing methods are designed to give your business an infusion of cash, providing it with the necessary boost to make the payment.
Accounts receivable financing provides credit using your accounts receivable as collateral. The amount of credit available can be increased or decreased depending on your needs, allowing for the kind of flexibility that payroll funding demands and often resulting in lower interest costs. Asset-based lending is a broader form of A/R financing utilizing additional forms of collateral to support the line of credit.
Factoring involves a creditor, called a factor, purchasing your accounts receivable, sometimes including the potential liability if your client doesn’t pay. This system provides good flexibility, allowing for dynamic increase or decrease to meet your specific needs.
Truly successful payroll financing requires a lender who is willing to work with you. You need to feel comfortable and know that they have your best interests at heart… and that they are considering funding options in light of your needs and your industry. At Crestmark, this kind of financing is our specialty. We help many types of businesses meet their goals every day using solutions that go beyond traditional bank loans; and have specialized experience with helping staffing companies meet the additional implications associated with the industry. These solutions allow us to offer credit to businesses that traditional lenders may deny, and provide solutions with unsurpassed flexibility.
Are you struggling to fund payroll? Crestmark can help you. Complete this form to learn about our dynamic and flexible funding options to make sure that your employees are compensated on time.