Staffing Owners: Payroll Funding vs. Banking

Costs Of Banking 

While a bank might be the traditional resource, it can provide challenges for staffing firms. Whether you’re a start-up or rapidly growing, banks may only cover a certain amount of your receivables (typically fixed and up to 75 percent), leaving you to figure out how to make the difference.

Banks have a hard total limit on what can be borrowed. So if there is a $1mm cap on the amount a staffing company can borrow and one end debtor uses $900,000, then there is only $100,000 left to fund other accounts. 

You may want to look in other directions for your financing needs. Here are three reasons why funding might be a better fit for your staffing business.

Full Funding

You can take a breath because funding companies serving staffing know how important your funding is and understand the industry. They will fund payroll way beyond what banks will cover, all the way up to 100% funding, including profit. Check out our Funding FAQ Page for more information about funding options.

Flexibility and Scalability

Another benefit is that most funding companies will have customized financing solutions specific to your needs. It’s a bonus if they have business intelligence services and long-term advisers that will help you protect your financial needs.

Scalability is also important. You want a financial solution that will grow with you and doesn’t tap out at a certain level. Conversely, you want one attuned to your needs during lean times. This ramping up and ramping down can literally save your business.

Speed and Efficiency

A funding company will also be able to help you increase payroll without missing a step and bill on time and professionally. Whether you are a start-up or established, you will not only present professionalism, but you will keep clients and associates happy and keep your business operations running smoothly.

Many vendors offer a comprehensive solution including integrated ATS/CRM, technology, back office services, and even beyond, to business intelligence and more. By having these services integrated you’re reducing the chance of error via double entries and so on.

All of these are good reasons to consider a funding company that concentrates on the staffing industry. At Madison, we’re here to help you with these ways to ensure your success. Contact us today and see how we can help you to grow and grow successfully.

Want more?

Are you seeking more information about financing options for your staffing company? We've got you covered! Check out these additional resources:

• Account Receivables Financing FAQ
• Payroll Funding VS. Banking: Advice for Staffing Startups 
• Payroll Funding Versus PEO

Learn more about payroll funding and how it can benefit your business by scheduling your 15-minute consultation here!