Payroll Funding vs Self-Financing: The Pros and Cons for Staffing Firms
Last time updated: 17 July, 2023
Last time updated: 17 July, 2023
Last updated on July 17th, 2023 at 03:31 pm
When it comes to invoice financing for your recruitment firm, if you can do it alone – great! That’s a remarkable achievement and should be celebrated. It might sound weird coming from a payroll funding company, but if that option is working for you and your goals, good for you. It enables you to manage your business yourself without relying on investors.The downside of self-funding, of course, is that you cannot run or grow your business if you do not have enough working capital on hand. As staffing is a cyclical business where often your money is tied up in receivables from your clients, sometimes this can be a challenge. The reason payroll funding companies like us exist is because for growing staffing firms, there is often a need for this service.
Pros:
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Cons:
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If you are comfortable where you are currently at and not looking to grow, self-funding is probably the best option for you. If you can afford to wait out the 30-60-90 day periods when your money is tied up in receivables and still pay your workers weekly, it is a good option.
If the time ever comes when you are ready to grow your firm to the next level and afford to take on bigger contracts, payroll funding is a good option for several reasons:
If it is time to start a conversation about payroll funding, please reach out to us at any time to schedule some time to talk about growth goals.
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