When your business is in a period of expansion, you may face the need to finance expansion including new equipment and a larger work force. Taking the next big step for your company’s future often requires hiring new employees, an expensive process that does not immediately generate return on the investment. There may be a period of time where cash flow levels are low as you cover the hiring, orientation and expanded payroll expenses while still anticipating the resulting increase in profits. However, your business can maintain cash flow during a work force expansion by financing receivables.
Finance the Hiring Process With Your Company’s Open Invoices
Accounts receivable financing, also known as factoring, is the sale of your open invoices for an expedited advance. A factoring company can purchase your receivables due in 15, 30 or 60 days, providing you with funding well before they are due. The process usually takes only a few days, and you can have a lump sum of cash within hours of approval and account set up.
The major benefit of this process for your company is that your business accesses cash fast without incurring debt. Since this is the sale of your company assets, the open invoices, your business will not need to budget for repayment or hefty interest fees. You will have access to the capital needed to expand your work force, including:
- Head hunter fees
- Advertising and job fair costs
- Human resource department admin costs
- Background check costs
- Upfront insurance and payroll enrollment costs
You also may need to finance several payroll dates before your new hires affect your profit and cash flow levels.
Begin the New Hire Process With Adequate Cash Flow
Universal Funding can answer your specific questions about factoring invoices and how the process can maintain your cash flow while your company expands. Fill out our simple online rate form to request a no-cost consultation and begin your search for a new work force today.