Payroll Funding is the short-term investment arm of a family trust.
Because it invests its own funds it can make a fast commitment by phone without a written application.
Offer your clients Payroll Funding
Payroll Funding Company, LLC (PFC) offers a unique service only to PEO/ASO/HRO clients that provides short-term cash to pay payroll. They can then use the cash that they would otherwise have used to pay payroll to even out their cash flow, pay bills, grow their business, or hire more people. That is why it’s called Payroll Funding.
Funding is offered by PEOs/ASOs/HROs directly to their clients just as they would offer other services.
As a PEO, ASO or HRO Why offer your Clients Payroll Funding?
You succeed when your clients succeed!
- If you have ever had to float a client’s payroll (even for a day or two), then they need Payroll Funding
- If a client has ever had NSF when you went to collect the Payroll Invoice, then they need Payroll Funding
- When a client stops paying payroll and cuts net checks to their employees
- If a client is growing and needs access to cash to help grow their business, then they need Payroll Funding
- If a client needs access to cash, they generally need it now, not next week or month, then they need Payroll Funding
Even more reasons to offer your clients Payroll Funding:
PEO/ASO/HRO clients are pre-qualified for Payroll Funding. As pre-qualified borrowers, there is:
• No written application
• No collateral or lien
• No Security required
• No personal guarantee
• No even a Credit Check
A simple phone interview is all that is required to mutually agree to on funding. Once agreed, both parties enter into an agreement to make funding available. Those approved enter into an agreement whereby PFC becomes available for funding. A PEO/ASO/HRO client has 5- days to pay back the funding amount to PFC plus 4% interest (APR), which equates to $0.55 per $1,000 funded. There is Grace Period which incurs a late fee. Extensions to the Grace Period are made based on mutual consent.
How do PEOs/ASOs/HROs offer Payroll Funding?
1. PEOs/ASOs/HROs identify which clients might have or have had cashflow issues which surfaces when payroll needs to be paid and introduces them to PFC.
2. PFC interviews each client to determine if they will be approved for Payroll Funding
3. PFC is also available to train PEO/ASO/HRO sales teams or brokers who can then offer Payroll Funding as part of their sales efforts. It might help close new business!