As a business owner, when your clients take longer to pay you than expected, your business can quickly start worrying about financial problems. Not only can you struggle about how to pay employees, but paying your rent, utilities, and other operating expenses can become a challenge.

In these situations, your business has a helpful financing option to consider: payroll financing. This involves selling unpaid invoices to a funder, getting a cash advance, and settling the transaction once your clients have paid you. 

Read on for five benefits that payroll financing offers your company for paying employees and beyond.

 

1. It Helps You Pay Your Employees Promptly

The most important benefit of payroll financing and invoice factoring lies in how it allows you to pay your employees according to the terms upon which you’ve agreed.

This provides more consistency for your staff who have their own bills to pay. Your employees’ satisfaction can also increase so that you have fewer problems with turnover and low employee morale.

Using payroll financing can also help you avoid legal issues that can occur when you delay paying your employees.

 

2. It Provides Your Company More Flexibility

When you choose payroll funding, know that you won’t have to worry about getting stuck in a contract.

So, if you decide you can handle your finances without payroll financing, then you can simply stop receiving funds. On the other hand, you can also get more money as your revenues and staffing levels grow and your financing needs change.

Whenever you need help paying staff, you can expect to have access to this convenient financing method for as long as you have customers who you can invoice.

 

3. It Can Support Your Business’s Growth

If you need some financial help growing your business, payroll financing can help you with that too. 

You might have fears about taking on new contracts since you don’t know what to expect when it comes to payment. Payroll financing eliminates that worry so that you can build your client base.

You can also feel more comfortable adding to your staff since you can always pay them with your advance funds that payroll funding offers.

 

4. It Can Protect Your Company’s Financial Health

When you use payroll financing, you avoid needing to take a bank loan to pay staff. You won’t have to worry about new debt appearing on the balance sheet and hurting your business’s ratios. 

At the same time, payroll funding helps you avoid problems with cash flow beyond just paying your staff. You can use the funds to pay regular operational expenses and avoid facing penalties for other unpaid bills.

 

5. It Can Help Streamline Your Company’s Finances

Payroll financing can also help streamline your company since some agencies will provide help with invoicing and collections. This provides your business with some additional expertise and allows you to focus on your most important business operations like hiring quality staff and gaining new clients.

 

Let Payroll Financing Help You Today

Rather than struggling to pay your bills and employees, give payroll financing a try and gain all these benefits.

When approved, you’ll get fast access to your funds, possibly even on the same day! Even better, you can expect to pay relatively low fees for the convenience and flexibility payroll financing can offer your business.

Are you ready to work with an experienced payroll funding company? Then Strategic Capital can help you obtain the funding you need.

Checking for pre-approval will not affect your credit score.

Strategic Capital | Headquartered in Kansas City, Strategic Capital has deployed over $220 Million to over 4,000 entrepreneurs to help them grow their businesses and achieve their dreams.