Payroll financing is a new age lending service that helps employers with meeting their obligation for timely salaries towards their staff.
What is Payroll Funding?
Payroll financing, also referred to as payroll funding, is a sort of lending service that enables companies to get funds for the processing of their payrolls. Businesses can face difficulties managing their cash flow and making payrolls on schedule.
According to a survey about 40% of businesses struggle with cash flow. Needing additional financing is not a sign of poor business management. Cash flow can be tight due to pending invoices, usually invoices have a 1 month to 60 day cycle. This can create a gap period when funds will be tight and processing payrolls will feel like a battle. It can be a sticky position to be in where you have to tell your employees they will not be getting their paycheck or receiving their paychecks late.
1 Click Capital’s 1 Click Payroll is a simple way to fund your payroll. We take pride in working with you the business owners so that you can run payroll on time and focus on expanding your business.
At 1 Click Capital we like the keep things simple, you can get a line of credit to help you with running payroll on time in difficult circumstances like when cash flow is running low or invoices haven’t cleared on time. Unlike other traditional loans we don’t take weeks to process your funds or don’t ask for collateral, neither do we ask for very high interest rates in short there are no hoops to jump.
What are the advantages of payroll financing?
- No more cash flow issues
The factoring business would make sure that there was a steady stream of cash coming in. Payroll obligations for both the weekly and fortnightly (biweekly) periods won’t be a problem for you.
- No hidden fees
There are no additional fees to be aware of. Factoring firms, in contrast to conventional financing solutions, are simple. Pick companies that have been around for a while and can offer you the greatest guidance for financial problems.
As you advance, your funding possibilities expand. You can increase your capital through factoring as you receive additional orders. You may be certain that you won’t experience any cash flow issues as long as you expand your clientele to include creditworthy customers.
- Good for business development
An organization may concentrate on taking on a new project or order with fewer worries on its mind. Payroll finance gives them the assurance they need to bring on additional employees in order to complete orders from new clients and avoid losing your skilled human resource to a lack of resources.
- Does not increase your balance sheet’s debt
Bank loans are a form of debt that show up as a liability on your balance sheet. Selling receivables is a debt-free method of funding.
- Competitive terms for the clients
Commercial customers often pay within 30 to 60 days. Because you have people to pay every week or every 15 days as a startup or small business, it becomes difficult to accept this norm. However, you can offer your clients this appealing term if you fund payroll through invoice factoring. You can expand your clientele thanks to it.
- Easy access
It’s simple to obtain payroll funding through invoice factoring. Applying for a bank loan is a drawn-out and challenging process. The most winners from this are startups and small businesses because they cannot fulfil all requirements for a bank loan. All you need for factoring services are creditworthy consumers.
These were some of the benefits of payroll funding.
Now let’s see which industries can benefit from payroll funding.
- Small Businesses
- Food and Beverages
- Electronic Manufacturer
- FMCG Companies
- IT & Services
- Airline & services
- B2B Services
So the next time your business is facing cash flow issues remember the benefits of getting a payroll funding and grow your business with ease.