Solutions · Payroll
Payroll runs Friday.
Your customer pays in 60 days.
Payroll funding is working capital raised against your unpaid invoices so you can pay your crew on schedule while customers pay on terms. Advance rates are typically 80 to 90 percent of eligible invoice value, depending on the industry, customer credit and facility terms, and once approved, eligible invoices can typically be funded within 24 to 48 hours. The timing of your payroll stops depending on the timing of your customers' accounts payable runs.
Based in Oklahoma City. Funding businesses nationwide.
By the Hexagon Commercial Finance team.
Payroll is the one bill that cannot wait.
Suppliers can be asked for another week. Equipment payments can sometimes be restructured. Payroll cannot. Miss it once and you lose the crew you spent years assembling, along with the reputation that brought them to you.
For labor-heavy businesses, the mathematics are unforgiving. Wages go out weekly or biweekly. Customer payments arrive on 30, 60 or 90 day terms. Every new contract widens that gap before it narrows it, which is why the most dangerous moment for a growing service business is the month after it wins its largest job.
Payroll funding closes the gap at its source. Rather than borrowing against the future, you convert work already delivered into cash today.
How a payroll-driven factoring cycle works in practice.
A staffing firm places 40 contractors. Timesheets are approved Monday and invoiced the same day. The invoice is submitted to Hexagon Monday afternoon, verified, and the advance is funded by Tuesday or Wednesday. Payroll runs Friday from cash already in the account.
The client pays that invoice 45 days later. The reserve balance, less the factoring fee, is released. Then the cycle repeats. Nothing accumulates, nothing compounds, and the facility grows automatically as more contractors are placed.
The practical effect is that payroll stops being a monthly crisis and becomes an ordinary scheduled outflow, planned against a predictable inflow.
Why this fits growth better than a fixed loan.
A term loan or line of credit is sized to your business as it was when the bank last reviewed it. Double your headcount and the facility does not double with you. You are back in front of a credit committee at exactly the moment you can least afford the distraction.
A factoring facility is sized to your receivables, so it expands as you invoice more. Win a larger contract and the available funding increases with the invoices that contract generates.
Factoring is also structured as the purchase of receivables rather than a traditional term loan, so there is no monthly loan repayment schedule to service. How a specific facility is presented in your financial statements is a question for your accountant.
At a glance
- Typical advance
- 80 to 90 percent of eligible invoice value, depending on industry, customer credit and facility terms
- Typical funding speed
- Once approved, eligible invoices can typically be funded within 24 to 48 hours
- Repayment schedule
- No monthly loan repayment. Settled when your customer pays
- Facility size
- Generally tied to eligible receivables
- Common users
- Staffing, construction, oilfield, security, janitorial
- Service area
- Nationwide, from our Oklahoma City office
Questions people ask
Make payroll the predictable part of the week.
Book a Cashflow Consultation. We fund businesses in all 50 states.