Part of operating a successful staffing company is having a dependable source of funding. Funding is necessary to market your company, fill orders, cover payroll, and achieve business goals. With customers paying as long as 90 days after receiving staffing services, waiting for invoice payments can be stressful. Having access to funding when you need it lets you focus on securing customers, recruiting talent, and building a more profitable staffing company.
Learn more about funding for your staffing company and why Madison Resources should be your trusted source.
What is Payroll Funding?
The most basic type of payroll funding for your staffing company is through asset-based lending credit lines secured by your receivables. The lender covers a percentage of your payroll based on submitted timecards. You use the money to pay your contractors. Although this process is called “payroll funding,” many lenders fund a percentage of your invoice rather than simply your payroll. Although some lenders provide as little as 75% funding, Madison Resources provides 100% funding. We put a contract in place, ensure you understand the terms, and disclose all fees to avoid surprises down the road.
How Payroll Funding Differs from a Loan
Because approval is based on the creditworthiness of your staffing company and your customers, payroll funding is flexible. Whether your staffing company is a startup or in growth mode, the funder provides the capital needed to fill your business needs in a short amount of time. This is much more efficient and effective than applying for a bank loan. Most banks examine three years of financial statements, a cash flow analysis, and collateral appraisals. This process may take months to complete. Even if your staffing company obtains a line of credit, it typically is for a fixed amount. This finite borrowing capacity limits your potential for growth. With Madison Resources, you have fewer restrictions, no rigid reporting requirements, and increased flexibility. Since we fund your staffing company at 100%, there is no real limit to the funding we provide.
Reasons to choose Madison Resources
Madison Resources is the most dedicated, staffing-specific, outsource service provider in the market. As the only provider that owns all its technology, we have a full-time development staff regularly delivering system updates to meet the needs of our clients. Because Madison is owned and managed by staffing industry executives, we know your business and are dedicated to increasing your profits. We offer a full–service business model under one transparent fee. Whether you are looking for operational support, technical support, or business intelligence, we are your one-stop partner. We assign a team of professionals with expertise in their field to handle your funding, billing, payroll, collections, cash application, and accounting.
Make Madison Resources Your Partner
Although we offer a funding-only option, we encourage you to take advantage of the full-service business model that Madison Resources offers. Having us take care of your back office can provide benefits and value beyond what you may expect. Contact us for a no-obligation consultation to assess your needs today.