Payroll Funding for Small Business
What is Payroll Funding and How Does it Work?
Payroll obligations is just one of the many challenges that businesses are faced with today as they meet their growth needs. Payroll funding is a tool that allows your company to finance invoices in order to make payroll. When customers and clients fall behind on their payments, this can jeopardize your payroll and impact your cash flow. Unless you have backup funding available, you risk keeping your finances on track.
Fast and Easy Payroll Funding
Universal Funding provides the financial services that keep small businesses afloat across the country. We help businesses maintain a steady cash flow by purchasing their unpaid invoices or accounts receivables. We advance you a significant portion of your unpaid invoices so that you can invest in your employees and provide them with a sense of security that their paycheck is never on the line.
Payroll Finance for Cash Flow Shortages
Are you facing financial issues in your business that is preventing you from paying your employees? Whether you have 5 or 500 employees, they deserve to be paid on-time every month. We typically see payroll shortages in the staffing and temporary personnel industry. However, many companies who experience seasonal dips in income face payroll hardships.
Our team is experienced in working with companies work through cash flow shortages to make payroll obligations. We offer advances to companies that have proven to be profitable, but may be facing a temporary shortage. Unlike traditional loans or working with other factoring companies with high rates, Universal Funding is privately funded and is able to offer low rates.
Invoice factoring can provide payroll funding to cash strapped businesses by allowing the business to sell accounts receivable in exchange for a lump sum of cash. The process is fast and simple. In some cases, businesses can receive the money in as little as 48 hours, allowing them to meet their payroll funding obligations and pay their employees for all their hard work.
Don’t Let Late Paying Customers Jeopardize Payroll
If your clients are becoming late on payments and you are unsure what to do, give us a call and we will answer your payroll funding questions. Payroll funding is the same as payroll financing and is a service that can be very important to small businesses that need a funding option to make payroll while increasing their financial stability. We can help you transform your assets into cash that can be used to help your business excel and become more successful. You can be more profitable, efficient, and more productive as a business. More importantly, you won’t have the weekly or monthly stress of making sure your customers have paid to meet your payroll needs.
The Difference Between Payroll Advance and Payroll Funding
A payroll advance refers to a personal loan product that allows an individual to receive an advance from a future paycheck, usually in exchange for a flat fee. These loans have a repayment requirement, usually in two to four weeks, and carry a relatively high interest rate. If someone defaults on a payroll advance, there are steps that are taken by the lender to recover those funds including collections activities and negative reporting to credit bureaus.
Payroll funding, on the other hand, refers to a process whereby a business obtains the cash necessary to cover its payroll obligations. Most companies have a reserve in their bank accounts to cover their payroll obligations. However, if a business lacks the necessary funds to cover their payroll, they can sell invoices to a factor to receive payroll funding. Payroll funding through an accounts receivable financing company, like Universal Funding, is not a loan and there are no repayment obligations. Since there is no repayment obligation, there is no risk of default or negative credit reporting. It is a simple sales transaction that helps companies meet their payroll obligations and keeps their businesses running smoothly.
Grow Your Business Today
Many business owners will not take risks to grow their business because the want to keep money in reserves to make payroll. Payroll financing allows you to use your reserves to expand your operations and staff.
Our payroll finance services are fast and use your accounts receivable as an asset. Approval can happen in a matter of days, and financing can begin within a couple of hours of receiving your first invoice. Instead of struggling with payroll this month, give us a call today at 800.405.6035 or complete a rate form and a factoring specialist will get in touch with you right away.