What is payroll financing, and how can it help you with business growth?

Operating expenses are part and parcel of every business, and often, a significant amount can be attributed to payroll. Employees are not just cogs in a wheel; they are essential to the success of a company. To avoid undue workplace stress, lower morale, and ultimately higher staff turnover, it is important for their salaries to be paid on time. With Zetl’s payroll financing solution, we free up your cash flow and ensure your staff are paid on time, while providing working capital for your business growth.

What is payroll financing?

Payroll financing provides businesses with immediate capital to fulfill their monthly staff expenditure. This is typically done by pledging the accounts receivables (invoices raised) — i.e. the money you are owed — to a financing company.

It’s common for customers these days to expect payment terms of a minimum of 30 days. To make matters worse, payments are often not made on time, which creates uncertainty when it comes to managing cash flow.

An effective solution to this comes in the form of payroll financing. This helps to unlock the money from unpaid invoices that would otherwise be tied up. The freed up cash then not only allows salaries to be paid on time, but also keeps the business running without a hitch even when there is a sudden large outflow of funds.

Here’s how Zetl’s payroll financing works:

1. Your business generates an invoice for services rendered.
2. A copy of the invoice is then uploaded via our platform along with supporting documents, such as time sheets.
3. After our review is complete, we will credit up to 90% of the invoice value to your business bank account in a matter of hours.
4. Upon receipt of payment from your client, you retain the full invoice amount less our service fee.

What are the benefits of Zetl’s payroll financing?

Retain and recruit talented employees

Employees are key pillars of a successful business. Confidence and motivation can easily be dampened if payroll is not made on time. Regular payments to staff prevent this from happening.

Improve cash flow

By releasing the funds tied up from unpaid invoices, the money can also go towards other operating expenses and new business opportunities which you might otherwise have to forego.

Fast and flexible access to cash

As long as the required documents are submitted in full, we are able to assess and advance the funds in less than 24 hours. What’s more, you can choose to use our services as and when the need arises, and only pay for the amount that is utilised. Compared to traditional financial products offered by banks, we are a faster, flexible and more efficient alternative.

Repay only after your invoices are paid

No cash flow worries as you only pay us back when the original invoice is fully settled by your client. There are no monthly interest payments or fixed term repayments, and service fee is only deducted at the end upon receipt of your client’s payment.

Financing is confidential

We understand that business relationships may be jeopardised if your clients are notified about the selling of your receivables. Payroll financing with Zetl is completely confidential, allowing business to carry on as usual.