The option of payroll funding your business invoices is a tremendous advantage. Without it, many companies could not pay their expenses, at least not early in their development. We discussed payroll funding in our June article, which is a way to make accounts receivable (A/R) payable to your employees and contractors even before you’ve raised sufficient revenue.
What are some specific reasons to consider this approach to business financing over traditional banking arrangements?
Reasons to Consider Payroll Funding
- Simplify Cash Flow Management - Imagine what it’s like (as a new business) without payroll funding. Every time a client or vendor doesn’t pay an invoice on time, it forces you to fall short on revenue, stop everything you’re doing, and troubleshoot problems. No business owner wants to run around extinguishing financial fires all the time. An A/R system makes life much simpler, and you’ll enjoy a more predictable cash flow, irrespective of when or how revenues flow into your account.
- Better Terms for Your Clients - This means you’ll be able to offer user friendly terms to both small and big clients alike. In a nutshell, not every business pays their invoices during the same intervals. Therefore, if you force everyone to pay you at a specific time, it could deter clients from engaging in business with you, over having to meet “traditional” invoice deadlines.
- Great for Growing Businesses - Since it’s a huge relief not to micromanage every financial detail, you’ll enjoy a much easier time managing the rest of your business. It also leaves room to expand your staff and scale your business sooner.
- Fast, Flexible, and No Need to Incur More Debt - This is the fastest way to obtain financing, and also allows you to avoid carrying so much debt, unlike traditional banking. Plus, all charges are straightforward, comprehensible to all participants, and involve no hidden fees or unnecessary complexity.
If these advantages sound like just what you need for your Florida business, then it’s time to partner with a professional employer organization (PEO) to help manage things.
Florida Resource Management serves small, medium, and large businesses with comprehensive support for payroll financing systems, safety management, and other essential HR administration. We’re the ones who can streamline your accounting and other personnel matters, allowing you to return to managing your company.
Contact us now to learn more about our payroll financing services by calling 941-343-6160.