Pros of Payroll to a Staffing Agency
A payroll loan is available for all types of businesses including a staffing agency so long as the value of the accounts receivables is enough for the borrower to use it as collateral for the amount of money the business needs Instead of the company collecting the debts that customer have to pay, it refers them to pay to the lender and the lender considers that as payment for the loan. Here are the benefits of payroll funding to a staffing agency.
You can bargain for an affordable interest rate and payment plan. Assets and liabilities balance out hence a payroll loan will not leave you with a debt on the balance sheet. The payroll funding (liability) is balanced by the accounts receivables (asset/collateral) hence your staffing agency if not in debt.
You can get the payroll funding to help you pay the payroll taxes or other debts in the agency. You can lose your business license, face penalties, the authorities will watch you more closely among other consequences if you fail to pay payroll taxes. Defaulting loans gives lenders the right to sell the assets to pledged as collateral to repay the debts. Lenders of payroll loans do not make a follow up to know how you sued the loans so long as you repay the loans; hence you can use payroll loan to finance another loan.
If you need more working capital get a payroll loan because it will increase cash flow in the staffing agency. During low season do not use the agency’s savings or profits for daily expenses because you can get a payroll loan and invest in your business. The lender does not take the entire amount that the customer pays but a percentage of it and sends the rest to you. You will be able to pay the payroll loan during peak season, therefore, avoid using the agency’s income unnecessarily when there are alternatives.
Financial problems in the staffing agency will force it to lay off some workers temporarily or permanently, force them to take pay cuts or delay their salaries. The payroll funding enhance the job security of your employees thus increasing job satisfaction among employees. Paying employees on time does not only affect their satisfaction level at work positively but also increases their level of productivity.
Your staffing agency needs enough finances for it to hire employees who have highly sought after qualifications by employers. Experienced and skilled employees bargain for a higher pay rate because they are confident that they add value to the employer. When you hire the best from the market, you will get more companies seeking to hire employees from your agency.