$600,000 Payroll Funding for a Minority Woman-Owned Staffing Business
1st Commercial Credit Funding Group has provided Payroll Funding and Invoice factoring for a Minority Woman-Owned Staffing Agency located in Texas. The contract extends for 12 months with the Department of Defense and requires a lot of upfront cost in onboarding employees, certifications and 4 to 5 weeks of payroll before an invoice is generated.
AUSTIN, Texas, Feb. 22, 2022 /PRNewswire/ -- 1st Commercial Credit, LLC is a nationwide funding company specializing in several industries including temporary staffing agencies, service providers, manufacturers and trucking companies. Clients that opt in an invoice factoring service can have easy approval access to other financial products including payroll funding, work order funding, mobilization funding, trade payable finance and purchase order funding.
There is a great distinction between Payroll Funding and Invoice Factoring. Many factoring companies do not fund payroll, they fund invoices for delivered services and there is a huge difference between the two. Staffing agencies that go into a contract with terms requiring only 1 invoice per month on net 45 to 60 day terms usually require both funding solutions.
What is the difference between Invoice Factoring and Payroll Funding?
An invoice for delivered services that has been acknowledged as a payable by the buyer is considered a receivable asset that can be factored or pledged as collateral for a line of credit. Factoring companies fund on Invoice/Receivable Assets only, and any funding before an invoice becomes an asset is considered pre-funding.
Raul Esqueda, President of 1st Commercial Credit says "Many staffing agencies are able to sustain payroll with just an invoice factoring service. Cash flow shortage for payroll occurs when they use up funds for mobilization or their customers allow only 1 inovice per month. Most factoring companies will not accommodate pre-billing or pre-funding since it is not an eligible asset. We utilize our own funds for the payroll funding program and therefore allows us to fund with fast approvals and same day funding."
Payroll Funding is basically pre-funding that provides funds to the business specifically for payroll and all taxes and is paid down once the invoice is generated. The repayment usually takes place between 1 to 3 weeks after the payroll funding occurs.
For more information about our payroll and receivable based funding, please contact us or call us 24/7 1 800 876 6071
SOURCE 1st Commercial Credit, LLC
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