Your business is getting more orders than ever before. Your salespeople are taking on new accounts. You want to fill client requests and bring in more revenue, but your workforce is stretched to its limit. How can you find the capital to hire more employees while your business is going through growing pains?
The Revenue and Payroll Conundrum
Hiring new employees is essential to growing a business. Expanding your workforce is a necessary cost that adds to quarterly taxes. Additionally, payroll needs to be met, and that’s a recurring expense every week or every other week. The plan seems fairly straightforward on paper, but even the best hiring strategy can come into direct conflict with cash flow. Sales may be through the roof, but if your business issues invoices on staggered payment schedules of 30 days or longer, you may not have the capital reserves to expand your workforce at the rate you need to achieve growth. Fortunately, there is a way to get the capital you need to hire more employees without taking out short-term loans to cover strains on cash flow until revenue starts coming in.
Boost Cash Flow and Expand Your Workforce
Waiting on revenue – especially during a period of growth – can be stressful. The lag in revenue can force growth plans to take a backseat, and prevent businesses from hiring the employees they need. Businesses that want to expand their workforce without waiting on staggered client payments use factoring services. Factoring speeds up the rate of revenue for your business by converting unpaid invoices to cash, typically within a single day. This helps to remove strains on cash flow and allows your business to build up the capital reserves necessary to cover the cost of expanding your workforce. Factoring is used by businesses in almost every sector that want to jump on growth opportunities and reduce the need for short term loans to handle the transition.
New Century Financial offers factoring services to businesses looking to position themselves for growth, as well as those looking to boost cash flow and build capital reserves. If your business is experiencing growing pains, and you need access to capital to hire more employees, contact the professionals at New Century Financial today.