Learn more about increasing profitability and making smarter payroll decisions with payroll funding by reading our most frequently asked questions.
What is payroll funding?
With payroll funding (or invoice factoring), your accounts receivable is purchased. This means that you are advanced a percentage of your invoice so you have more flexible cash flow while waiting for your customers to pay their invoices. Payroll funding accelerates your revenue stream so you can address expenses such as a lease, suppliers, payroll, and other operational costs.
Check out the infographic which explains payroll funding in seven simple steps.
How is payroll funding different than a loan?
Businesses and their backing of financial investors are scrutinized by banks. This process takes time, sometimes weeks or months. It also requires three years of financial statements, a cash flow analysis, and collateral appraisals. If you can acquire a line of credit, it is usually for a fixed amount which can limit your staffing agency’s growth.
Payroll funding is more adaptable and the approval of your loan is based on credit-worthiness. This allows a funding company to fund staffing agency start-ups and other rapidly growing staffing agencies that often find themselves unable to get funding from a bank.
Are there contracts involved?
Yes, there is a contract in place to protect both parties. Each contract is unique and customized based upon the client’s needs.
How do I know if Lone Oak Payroll is right for me?
Lone Oak Payroll supports small, midsize and large staffing agencies achieve their goals by providing the best solution tailored for each company’s unique needs and growth initiatives. If you are looking to grow your staffing agency, secure added support, reduce costs and save valuable time, learn how Lone Oak Payroll can help and contact us today.
Do you work with startups?
Yes, we work with both staffing agency start-ups and established staffing agencies looking to expand or increase value.
What benefits do I get when I work with Lone Oak Payroll?
With Lone Oak Payroll, we are more than just your payroll funding company. Our team works hard to become a seamless extension of your internal staff to support your staffing agency’s operational needs. You receive secure funding, help for all your payroll processing needs, additional support from some of the most experienced professionals in the industry and more. Learn more about how Lone Oak Payroll can help your staffing agency grow and contact us today.
Let us take care of the paperwork; you take care of running your business.