How Payroll Financing Can Help Your Business Grow

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How Payroll Financing Can Help Your Business Grow

Here's the situation. Your business is performing extremely well, gaining clients at an astonishing rate. Your all-star employees are servicing those clients but they've reached full capacity when it comes to their workload. You don't want to turn away new clients, but you can't afford to hire more staff because a lot of your accounts receivable aren't due for another 30 or 60 days. What are you going to do? 

Enter Matrix Payroll Financing. This payroll services product will let you expand your team, take on more clients, and grow your business even further. Let's take a closer look at how it will do so.

Improving Your Access to Capital

Matrix Payroll Financing is a simple and easy to use payroll services product that allows your business to avoid the stress and worry that comes with having to consistently meet payroll. All your company has to do is sign an agreement and Matrix Payroll Financing will fund, administer, and execute your payroll for you. This service is ideally suited for the following businesses:

  • Startups / transitioning companies who are expanding at a quick rate
  • Seasonal businesses who experience slowdowns in sales
  • Companies who have a large chunk of their accounts receivable overdue 

By not having to devote a large portion of your cash reserves to making payroll on a consistent basis, your business will experience an immediate boost to its cash flow, allowing it to divert that money towards other important projects or expansion efforts.

How You Can Use Payroll Financing to Grow Your Business

For startups, one of the biggest expenses on their ledger tends to be payroll. This can make it extremely stressful for these business owners every time the next pay period rolls around. Since the company hasn't been around very long, startups tend to not have the same cash reserves that established businesses do. They also face headwinds in the form of the costs that are associated with getting a new business off the ground.

Helping Avoid a Cash Crunch 

At times, startups who are continuing to see growth and adding clients at a high rate can run into a cash crunch. They need to hire more employees to be able to service their expanding client list, but don't have the money to do so. Usually, because accounts receivables are structured on a net 30 or net 60 schedules, wherein clients don't have to pay their balance owing for 30 or 60 days from the end of the month the invoice was sent. This can cause serious problems for startups, as often a large portion of their invoices are not due for at least a month or two. 

Employees will not understand and are entitled to be paid on time, every pay period. With payroll financing, worries with cash flow problems can be laid to rest. Our payroll funding company will fund, administer, and execute your payroll for you. That means you don't have to worry about a thing when it comes to the payroll for your company. 

Freeing Up Cash and Resources

When you use a payroll services company such as Matrix for payroll financing, you're not only freeing up your cash but further resources too. This is because, in addition to funding payroll, we also administer and process it for you. Remove the stress and worry of hiring more human resources staff to handle your expanding payroll needs, or worse yet, doing it yourself. You can simply focus on running your business and expanding it further while we handle all the admin associated with your payroll. 

Removing Cash Flow Restraints

Payroll financing is an extremely useful tool for those businesses who face an interim shortage of cash flow, but have the accounts receivable to easily finance their obligations. It can be used to help keep expanding startups or transitioning businesses on the path of exponential growth by allowing them to hire more staff. Or it can help seasonal businesses weather the slow times and reinvest in their operations, so they can increase their capabilities and still experience growth even though current revenues may be lower. It can also help those businesses who have a disproportionate amount of their accounts receivable overdue, allowing them to not miss a beat and keep operating at full capacity. 

Matrix is here to give you that boost if you need it! If you're interested in accessing payroll financing to help grow your business, contact us today and one of our team members will be in touch. 

Frequently Asked Questions

Is payroll financing really as simple as you make it out to be?

It is! Once we receive all the required information from you and set everything up, you'll never have to worry about making or managing payroll again if you don't want to. 

What would you compare payroll financing to? 

The closest and most familiar comparison for payroll financing would have to be a business line of credit. But it's notoriously hard for startups or transitioning businesses to acquire these lines of credit, usually due to their lack of history. The added bonus of using Matrix for your payroll funding needs is that we're a full-service payroll services company, so we can not only fund your payroll but administer and execute it as well.

What is the approval process for payroll financing?

As with any financing arrangement, due diligence will be carried out. We will review your financial statements and do a credit check to make sure the arrangement is in the best interest of both parties. It's a relatively quick process and it can be expedited if need be.

Ready to make your life easier?

If you're ready to focus on growing your business and would like Matrix to take care of your admin headaches, contact us today by calling 1-866-666-9520 or fill out the form below. Let's start making your life easier. 

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