What are you thankful for this year? People often think of their family, friends, and health. If you’re a business owner, there’s even more to be thankful for. This could include good employees, good customers, and a strong foundation. But we know it takes help and resources to create a successful business. Services such as payroll factoring help your business function and manage your concerns.
What Is Factoring?
Factoring is the buying and selling of unpaid invoices. As a business owner, you can sell your outstanding invoices to a factoring company. They’ll pay you up to 80% of the invoice value, and then the company is in charge of getting them paid. Once they are paid in full, they pay you the balance keeping a small fee for their services. When used for payroll, factoring pays your employees while you’re waiting for customers to pay you.
Why Use Factoring?
Staffing businesses and security guard companies especially can benefit from payroll factoring. Their product is people, and these people need paying at regular intervals. Unfortunately, clients hiring people often have invoice cycles that differ from paycheck schedules. For example, your customer may only process invoices on a monthly basis. But, your employees need paychecks every two weeks. Here’s where factoring can come in!
Each business has different needs and thus different incentives to use factoring. But in general, there are so many reasons to be thankful for payroll factoring:
- Perfect Timing: As we described above, different businesses pay bills at different times. Since the biggest “bill” you likely have is your payroll, this can be frustrating! Payroll factoring makes this timing issue non-existent. You can pay your employees when they need to be paid, regardless of when your clients send their checks.
- Employees Stay Happy: They still get their money at the time they expect it—at no stress to you. Happy employees make excellent employees. Keep them happy—and retained—by using payroll factoring.
- Clients Stay Happy: Your customers have limitations on when they can process checks. Especially government. You can call your contact all you want, but it’s likely they can’t change their invoice cycles either. Keep them happy by not constantly checking in. With payroll factoring, they can pay you when they can, and you can keep a happy customer coming back.
- Other Expenses: Factoring can take care of your payroll, so you spend your money to grow your business. Spend it on equipment, marketing, or supplies. Instead of being held captive by payroll payments, you’ll be free to invest it back in your business. When you see the results, you’ll be thankful you did.
Payroll Factoring With UC Funding
United Capital Funding provides payroll factoring services to a variety of industries. We’re thankful to help businesses grow and succeed on a daily basis. Give us a call at 877.894.8232 for a quick, free quote. Follow us on Twitter for company updates and information. We also have a YouTube channel for users to learn more about our factoring services. Thanks for reading!