Use Invoice Discounting To Fund Payroll
Posted on June 24, 2014 in Factoring
Your invoices continue to pile up and your employees need to be paid their wages. Each and every day, UK business owners struggle to maintain the balance between a slow sales ledger and the needs of their employees. Whether you are maintaining your own sales force or using an outsourced staff, you still have to find ways to meet payroll and keep production going. It can be especially hectic if you are using an outsourced staff and you know that payroll is a very sensitive subject. When your cash flow is slow, your options start to dwindle. If you want to keep your company operational, then you have to make some quick and long-term decisions.
If you are unfamiliar with invoice discounting, then you need to get caught up and ready to make it part of the way that you do business. 1st Commercial Credit has a staff of financial experts that is ready to explain the entire process to you and show you how invoice discounting can change your company’s fortunes. Every business professional knows the importance of collecting information before making an important decision. But with your payroll deadline looming and your sales ledger out of balance with past due debts, you do not have the kind of time you would like to have to make this important decision. That is when it is time to call 1st Commercial Credit.
What Is Invoice Discounting And How Can It Help?
Each day, you pour over your sales ledger and review your receivables. Business looks brisk, but that is only the business that is being billed out to clients. When you look at the other side of your ledger, you tend to get a little despondent. The other side of your ledger is the money that is coming in from those receivables, and the money coming in is definitely not keeping pace with the invoicing. In most cases, the pace at which clients pay their debts would not matter so much if it were not for the fact that your company has bills to pay and you also have payroll to make. Some of your bills can wait, but not payroll. That is where invoice discounting comes in.
Invoice discounting is a receivables service provided by a professional factor. When it is done right, it is a seamless process that turns your sales ledger into a cash flow report. Your receivables are utilized as collateral towards funds that are placed into your company’s accounts. 1st Commercial Credit is an international factor that understands just how important it is that you meet all of your financial obligations, especially payroll. We will use our invoice discount services to develop a reliable business line of credit based on your receivables. We will be able to make sure that you have the funds you need to meet payroll and keep your staff productive and happy.
1st Commercial Credit Makes Invoice Discounting Simple
The one thing that business professionals should realize about 1st Commercial Credit is that we are not a bank. When you think about business finance, you often think of the red tape and costs of doing business with a bank. The processes put in place by lending institutions can slow down the process considerably and make it difficult to get the funding you need in a timely manner. When it comes to meeting payroll, you do not have days or weeks for the bank to make its decision. You need funding immediately or else you risk the possibility of missing payroll and making things very difficult for your company and your staff.
1st Commercial Credit is a professional factor that has streamlined the application process and also created an efficient way to submit and approve invoices. When you decide to work with us on your receivables, you can start the process with our online application. It only takes us a few business days to approve your application and set up your account. Our invoice discounting services are flexible and based on our years of experience in your industry. We understand the challenges you have to meet and we know how important funding payroll is to your organisation. That is why we have taken the time to study your industry and develop invoice discounting programs that will solve your funding problems.
Payroll Is The Core Of Your Organisation
Think about the many different kinds of bills your company pays that must be paid on time. In reality, there are very few that could not wait a few days before they are satisfied. But payroll is something that must be taken care of immediately and on time. Your entire business model is built around making sure that the funds to meet payroll are always on hand and that your staff gets paid on time. Without the proper payroll funding, your organization could fall into disarray and potentially never recover. When you really think about it, your payroll payments are the core of your company’s business operations.
When a financial obligation is that important, you do not want to take any chances with it. That is why you need to look into a long-term relationship with an invoice discounting organisation like 1st Commercial Credit. Funding receivables is not something that is done just once and then forgotten. It is something that is utilized on an ongoing basis to make sure that you always have the kind of cash flow you need to move forward with your business plans. Invoice discounting from a qualified factor such as 1st Commercial Credit will give you the financial foundation your organisation needs to meet payroll and also fund other growth projects that are in your business plan. Since you never have to stop and worry about funding, you can always be moving forward.
Invoice Discounting Makes Payroll Adjustments Possible
Do you have an employee that has gone above and beyond the call of duty to make your company more successful? Has your production group exceeded its goals to help your company fulfil an important order? Your staff works hard for the future of your company and invoice discounting can make sure that you have the funds to reward hard work. When you have a business line of credit that is financed by your receivables, you have the funds on hand to offer as bonuses to employees that make your organisation more successful. It is a great way to encourage high productivity and reward hard work.
Is your company contemplating an expansion to another shift to take on a spike in business? With bank lending, you may not have the comfort level you need to bring in that new shift and meet payroll. But when you turn to invoice discounting, the increase in sales that brought about the new shift can be the very thing that finances the new payroll. Your company will no longer be handcuffed by a sales ledger with past due invoices. If you have plans that include an increase in staffing, then you can have the confidence of knowing that the payroll funding will be in place and that you will be able to meet all of your ongoing obligations.
1st Commercial Credit is a factor that knows how to create the ideal invoice discounting program for your company. Contact us today and we will guide you through our process and show you just how easy it is to turn that ledger of receivables into a list of invoices that become your essential cash flow. You can eliminate payroll worries and focus on the future when you contact 1st Commercial Credit today.