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How can a Business Survive an Increased Payroll thru AR Financing

Biggest obligation of a payroll company like ADP payroll services is to pay salary and wages on time. You may be heavy on people at your business, but you are still responsible for their salaries and wages, come rain or shine. And the need to stick to the salary dates as per contracts is mandatory, making cash flow and payday a miserable time.

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How can a Business Survive an Increased Payroll thru AR Financing

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  1. How can a Business Survive an Increased Payroll thru AR Financing

  2. Biggest obligation of a payroll company like ADP payroll services is to pay salary and wages on time. You may be heavy on people at your business, but you are still responsible for their salaries and wages, come rain or shine. And the need to stick to the salary dates as per contracts is mandatory, making cash flow and payday a miserable time.

  3. You bill your invoices to each of your customers as per agreed dates, etc. and everything should go fine, of course, until your customer is slow to pay or a myriad of reason (i.e. lost your invoice, missing some info, etc.). The big question is“How are you going to pay your staff when you yourself are not even being paid?” Instead of going into panic mode, you need to figure out how you can pay your staff. A sharp business person would make their existing assets work harder…how can this be done? By leveraging your invoices….

  4. How Invoice Factoring Can Meet and Exceed Your Payroll Funding Needs The nature of business is to delay payments as long as possible. You can turn your unpaid invoice to cash instantly by getting it factored. What is factoring invoice financing? It is where a company called, a Factor, will buy your receivables at discounted rates and then will give you an immediate payment for most of the value of the invoice. With accounts receivable financing, you will have funds released the same day and can pay salaries and wages immediately.

  5. The key is finding the right invoice factoring company that can operate in labor rich states well like Ohio for example. They will charge you certain amount or percentage of the invoice as fees for their service. Regarding collections, they will directly collect the payments from your clients on due date and will do the follow-ups. The limit of funds you can get is tied up with your sales ledger and thus can accommodate your increasing requirements in future.

  6. How are you benefitted? • You can have funds against your invoices immediately, cutting down your waiting time • You are able to pay the salaries and wages on time • There No increase in debt for your company • You can confidently focus on taking new projects or any special project without worrying about funds • With timely payments, credit scores of your business improves • As invoice factoring is not a loan, you need not have to worry about repaying it • There is no limit to the amount of invoice you want to get factored, thus allowing flexibility. You have the freedom to choose the invoices you want to get factored depending on your needs. • Very Flexible!

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