Fortunately, payroll funding provides staffing agencies with the capital needed to maintain and expand the company. Ralph Johnson of AGF notes that in addition to supplying consistent cash flow, payroll funding offers numerous other benefits:
Flexibility
As a staffing agency owner, you know the business’s capital needs can vary drastically by pay period. You may need to utilize payroll funding one month and have enough in your cash reserves the next. Payroll funding is incredibly flexible and based on your needs and volume. It allows you to acquire more capital when you have more new contracts.
No New Debt
Many staffing agencies turn to pay roll funding because they don’t want to incur more debt. A bank loan or credit card adds more debt to your balance sheet. With payroll funding, you can get the working capital you need without increasing your debt.
Promotes Growth
Though it does not directly drive growth, payroll funding certainly promotes it. Payroll funding enables you to use your funds in a more profitable way. You get the working capital you need to grow your business and take advantage of new business opportunities.