Payroll Advance for Staffing Companies
When you're a staffing company, you can have revenue shortfalls even when business is going strong. What can you do to manage this shortfall while still making payroll on time so that staff are paid as they should be? Bay View Funding's Payroll Advance Program can help manage that shortfall. Here's how it works:
Sign up for Bay View Funding’s Payroll Advance Program
o Assuming $10,000 per week in invoices, $9000 (90% of $10,000) are advanced to you every Monday through BVF's Invoice Factoring Payroll Advance Program so that you can make payroll and pay other expenses by that Friday. (By contrast, standard factoring advances are given less than 24 hours before payroll.)
o You are given until Thursday to send BVF your invoices, so that you have more time to prepare them.
o You pay an advance fee of $200 (or $100 per increment of $5000) to BVF in exchange for the payroll services.
o There are no setup costs, although standard factoring fees of 0.8% per 10 days against invoice face will apply.
How Bay View Funding's Program Works
If you issue paychecks on a Friday for the prior week's payroll, you can get funds in your account by the Monday prior to payday Friday using your payroll or billing report as the basis for your advance. The Payroll Advance Program gives you funds days earlier than typical factoring services, which don't advance funds until just before payroll is due. That means you may miss funding for payroll on Friday. By having access to those funds on the Monday of each payroll week (with staff checks issued on Friday), you can make payroll and also have the necessary funds on hand to take care of other operating expenses.
What do you have to do?
In order to allow BVF to properly serve you, you must submit prepared invoices within three business days.
Proceeds are then factored to repay the advance. BVF reserves the right to prepare and submit invoices to customers if you, the client, default, whereupon you are charged a $25 fee per day until invoices are received.