Use Case: Payroll
Your crew gets paid on Friday. Your customers do not.
Payroll is the one bill that cannot wait. When customers pay on long terms, staff costs land weeks before the revenue does. We help you close that gap without reaching for expensive short-term money.
The Need
Payroll gaps usually come from growth, not weakness.
Staffing firms, contractors, carriers and service companies all pay people weekly or biweekly while billing monthly and collecting later still. A new client or a big project makes the gap bigger.
Because payroll is urgent, owners often accept the first offer they get. A short-term advance can cost far more than a structure built on the invoices that payroll created in the first place.
Build a Plan
Before you apply.
Tie payroll to the work it produced
Invoices for completed work are the natural source of payroll funding. Factoring them aligns cash with labour.
Build a buffer
One or two payroll cycles in reserve removes most of the stress. Equipment equity is a cost-effective way to build it.
Plan for new hires
If a contract requires hiring, fund the first few weeks of wages as part of the contract plan, not after the fact.
Financing Routes
Ways to fund it.
The best route depends on what the business owns and what it is owed.
AR & Invoice Factoring
Advance against invoices for completed work so payroll is covered as soon as you bill.
Learn about AR & Invoice FactoringEquipment Refinance
Release equity from owned equipment to build a payroll reserve.
Learn about Equipment RefinanceSale-Leaseback
Turn owned equipment into a cash cushion while continuing to use it every day.
Learn about Sale-LeasebackEquipment Financing
Finance equipment purchases so cash stays available for wages.
Learn about Equipment FinancingHow It Works
Three steps to a decision.
Tell us about the business
What you own, what you are owed and what the capital is for. A short call or the online form is enough to start.
We match the structure
We review the assets and the need, then take the file to the funding partners best suited to it.
Compare and decide
You see the amount, term and payment for each option with the trade-offs written out. Nothing moves until you choose.
What to prepare
What funding partners review.
A complete file moves faster. Here is what usually helps:
- Payroll schedule and typical amounts
- Accounts receivable aging
- Recent bank statements
- Major client contracts
- List of owned equipment
- Year-end financial statements if available
Questions.
Factoring can often be set up within a week, then funds invoices on an ongoing basis within a day or two of billing.
Not always, but it is often the most expensive option. It is worth comparing it with invoice- or asset-based structures first.
No. Receivables alone can support factoring. Equipment simply adds another option.
No. Payroll funding happens between you, your customers and the funding partner.
Next Step
Let's see if we can help!
A short conversation is enough to tell you whether there is capital available and what it would look like.