What Is Payroll Finance?
Payroll finance is a fully funded solution, usually aimed toward recruitment type businesses. The funder will advance 100% of the wages cost weekly or monthly whilst you wait for your client to settle your invoices, giving you instant cash flow to ensure your workers are paid on time. Once your invoices are then settled, the difference in value between the sales invoice value and the wages (the margin) is transferred to you.
The funder will also normally manage your back-office processes by raising your sales invoices and managing the payroll function on your behalf meaning more time for you to focus on running your business.
The cost of payroll finance is usually calculated as a simple percentage of your total sales, deducted automatically from the margin payment made to you.
Benefits of Payroll Finance Include:
- Ensure your workers are paid on time
- Payroll process is completely outsourced
- Maintain compliance with HMRC
- Sales invoices raised, sent to clients, and collected for you
How Payroll Finance Works: