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.