Boost Business Growth with Payroll

Types of Payroll Funding Solutions

There are several types of payroll funding solutions available, each catering to different business needs:

• Factoring: In this model, businesses sell their outstanding invoices to a factoring company at a discount. The factoring company then advances a percentage of the invoice value, usually between 70% to 90%, and takes responsibility for collecting the full invoice amount from the client.
• Asset-Based Lending: This involves a loan secured by the company's assets, including accounts receivable and inventory. The loan amount is determined based on the value of these assets.
• Invoice Discounting: Similar to factoring, invoice discounting allows businesses to borrow against their invoices. However, the business retains control over its sales ledger and continues to collect payments from clients.