Payroll funding (often referred to as Recruitment Finance) helps businesses which supply temporary contractors to meet their salary bill at the end of each week/month. It is suitable for recruitment companies, cleaning contractors and security companies.
There are a number of different components available. These are: payroll funding, invoicing, credit control, factoring and bad debt protection. Different funders offer either all or parts of these components and we can help you find what you need. For example if you are a new start company it may suit you to outsource your payroll function - it could be a major time-saver for you.
1. Payroll Funding – the payroll company will pay your salary bill (via a loan) for approximately 2 months – after which time the loan needs to be repaid with interest. This operates on a rolling basis and as your customers pay the loan gets reduced. Included in this service will be the maintenance of employee records, running the payroll and issuing pay-slips.
2. Invoicing – based on the timesheets your contractors submit, invoices can be produced and sent to your customers.
3. Credit Control – includes chasing your customers for payment by telephone and mailing statements.
4. Factoring – once the invoice to your customer is raised you can draw down up to 100% of the invoice value, giving you access to your profit without having to wait until your customer actually pays.
5. Bad Debt Protection (credit insurance) – insures you against the risk of your customers going into administration or liquidation, giving you peace of mind.
Cashflow Finance Solutions can discuss your requirements, explain the options available, and then introduce you to the right funders to give you the best solution for your business. Give us a call today on 0845 180 1188 – it will save you time and money.