Meeting payroll each week for IT, telecom, staffing, security guard, and other service companies can be a big challenge. Payroll funding programs can get these companies the money they need on a weekly basis. The funding comes from factoring of their invoices or invoice factoring.
Lets take a Chicago Illinois IT staffing company as an example. The 13-year-old Company is a leading provider of Information Technology solutions including Data Warehousing, Quality Assurance, Java, Applications, and Networking. With extensive domain knowledge in many verticals, the Company is considered to be one of America's leading information technology and knowledge process outsourcing organizations. With multiple offices and service locations overseas, their customers include some of the biggest organizations in Europe, North America and U.S.
A company such this has large payroll needs and to maintain the proper level of cash flow can be very difficult. In order to handle the amount of working capital needed for payroll, they utilize invoice factoring. With an invoice factoring line of credit, the Company will be able to meet weekly payroll needs without having to wait up to 60 days for receivables. This gives them the money they need now.
Their operating and payroll expenses can not be put off, it is important that they be able to keep their cash flowing at all times. For example, each of their employees will need to be paid, so will rent and utilities. They also need cash available to advertise job openings or other expenses. Waiting around for a business loan isn't possible or practical.
Factors can offer a 95% same day wire transfer advance against invoices for a clients. After the invoice is paid the factor deducts their fees and remit the balance back to the Company. Depending on volume the discount fee can be as low as 1%. Each account is handled individually. The client is then assigned an account executive, a real, live person that the company get to know, as a single point of contact. They get to know the Company as well and how they want your account handled.
Companies like the Chicago IT staffing firm no longer have to worry about qualifying for a loan or having cash flow at their disposal. They are able to deposit cash into their bank account within 24 hours. This will allow the Company to meet their financial obligations without taking on new debt all through a payroll funding program.
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