What is Payroll Funding?

Payroll funding is a financial solution designed to help businesses manage their cash flow and meet their payroll obligations. It involves selling unpaid invoices to a factoring company in exchange for immediate cash. This type of financing is particularly useful for businesses with high volumes of outstanding accounts receivable or seasonal fluctuations in cash flow. By converting unpaid invoices into working capital, businesses can pay employees on time and maintain a steady cash flow, avoiding the stress and disruption caused by cash flow gaps.

Benefits of Working with a Payroll Funding Company

Partnering with a payroll funding company offers numerous advantages for businesses. One of the primary benefits is the ability to access immediate cash to meet payroll obligations, eliminating the risk of late payments or cash flow shortages. Payroll funding companies provide flexible funding solutions, allowing businesses to choose the amount of funding they need and when they need it. Additionally, these companies handle the collection of unpaid invoices, freeing up businesses to focus on their core operations. By working with a payroll funding company, businesses can improve their cash flow, reduce financial stress, and enhance their overall financial stability.

How Payroll Funding Works

The payroll funding process is straightforward and efficient. Here’s how it works:

1. A business generates an invoice for a customer and sends it to the factoring company.
2. The factoring company purchases the invoice and advances a significant portion of the invoice value to the business.
3. The business uses the funds to meet its payroll obligations and cover other business expenses.
4. The factoring company collects payment from the customer and returns the remaining balance to the business, minus a small fee.

Typically, payroll funding companies advance 80-90% of the invoice value, with the remaining balance held in reserve until the customer pays the invoice. This process allows businesses to access immediate cash and maintain a steady cash flow, while also reducing the risk of late payments or cash flow shortages.

Better Business Funding: Easy to Obtain, Easy to Grow

Flexible and simple payroll funding for home health care agencies. Payroll funding providers facilitate cash flow by purchasing unpaid invoices. We make it easy to obtain the working capital necessary to grow your business. A payroll finance company can provide immediate cash advances, making home health care payroll funding an ideal solution to your home healthcare agency’s cash flow issues. Whether you wait on slow payments or need new working capital to expand, if you provide non-medical home care then you can benefit from a flexible home health care payroll factoring program.

You can use home healthcare payroll funding to cover your agency’s operating costs for a variety of in-home services to assist patients with their short- or long-term needs:

• People with temporary or permanent disabilities
• Patients with chronic illnesses
• Elderly patients
• People rehabilitating from a procedure or illness

Instead of hinging your ability to make payroll and overhead costs on other agencies’ payment schedules, begin home healthcare payroll funding and receive immediate cash for your unpaid invoices and claims. When you submit invoices for completed service shifts, PRN Funding will verify them and advance you a percentage of the invoice amount within 24 hours; then, when we collect from your customers we will send you the remaining amount minus a small factoring fee.advance you a percentage of the invoice amount within 24 hours; then, when we collect from your customers we will send you the remaining amount minus a small factoring fee.