Payroll Factoring Solutions
Thinking about payroll can keep you up at night, especially when there's a cash flow deficit. Rumors of a delay can cause employees to question company stability. Worse -- you might lose your most talented workers to the competition.
You are not alone when it comes to cash flow slowing you down.
Economic research sponsored by the Federal Reserve in 2017 highlighted funding shortfalls plaguing small and medium-sized companies:
- 71% of medium credit risk firms and 90% of firms with high credit risk went through cash flow deficiencies caused by insufficient credit histories and inadequate collateral
- 40% of employer firms had difficulty paying operating expenses
View Source: fedsmallbusiness.org
It's time to think outside the box:
Having cash flow problems and minimal collateral can make getting financing from traditional sources difficult. When making payroll is an issue, and you need to come through quickly. You may want to consider accounts receivable factoring. Factoring is a commonly used solution to get funds in a hurry. Lots of small businesses face challenges collecting on their invoices in time to have cash on hand to cover payroll. One of the most frustrating things for a business owner to go through is to have lots of accounts receivable on the books, but little cash in hand to show for it. Factoring allows business owners to get cash for their accounts receivable right away. This can be extremely helpful when there’s an urgent cash need for a critical expense like payroll.
Factoring companies like Crèdito Real USA, infuse construction companies and small businesses with cash by purchasing their invoices (accounts receivable). Qualification is not based on the applicant’s credit but instead on the creditworthiness of the invoiced clients. Crèdito Real USA specializes in helping small to medium-sized construction companies grow through a host of financial services as well as offering heavy equipment leasing. Their goal is to help clients build cash flow, assets and credit history to the point where financial factoring is no longer needed. If you own a small company and cash flow problems keep you from competing with larger companies, consider finance factoring.
For more information or more client references about how construction factoring through Crédito Real USA - Business Capital works or how it has helped contractors like you, give us a call or come to our next contractor event in the city.
Check out our contractor networking event Conexión.