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Q and A with Payro, a Payroll Financing Solution

12-08-2021
Nadia Hercules

Viventium’s CMO Terra Vicario Sat Down with Morris Reichman, President of Payro Finance, a Payroll Financing Solution

At Viventium, we are always looking to find out ways in which companies help support home care and home health agencies and senior care and skilled nursing facilities. Often times, the solutions we learn about fulfill a specific need for a specific time. We had the opportunity to sit down with Morris, President of Payro Finance, and he shared how providing solutions to improve cash flow has helped a number of health care agencies and facilities during a time of need.

Who is Payro Finance?

Payro Finance, a payroll funding company, was founded to support business owners by providing them with funding to cover their payroll on time.

Most small to mid-sized businesses face a cash flow problem at one time or another, and unlike most obligations, payroll must be met on time and cannot be delayed, thus making payroll a stressful  distraction. Having the option to finance payroll helps businesses run more efficiently.

What is one of the biggest challenges that businesses in the healthcare industry face when it comes to payroll?

Payroll is one of the most significant expenses that can create cash flow issues for businesses that experience delayed payments, like home care agencies and senior care facilities. They have to deal with insurance providers, Medicaid, and Medicare, which have complex payout procedures, and it can take anywhere from 30 to 90 days to receive reimbursements or remittances. On the other hand, payroll is typically weekly or bi-weekly, and slow receivables can create challenging cash flow issues for even the most established organizations.

Given these facts, the healthcare industry is prone to delayed payments and may ultimately find itself in a crunch come payroll time.

Why? Because employees expect to be paid on time, as they should.

If your business collects payments for services rendered up to 30, 60, or 90 days after the invoice date, you’ll likely struggle to have cash on hand when you need it. Consequently, your business may need to find solutions to pay for everyday business expenses, including payroll.

How does Payro help solve cash flow issues?

 The Payro Finance loan is a loan designed specifically for payroll. With Payro, you can get a quick line of credit to help you run payroll on time during those times when funds are tight and you are waiting for open invoices to get paid. Unlike traditional loans or other lending options, collateral is not required. We do not use your outstanding invoices as collateral or force you to change how you conduct business with your customers. We also do not demand a slice of future sales or hit you with extremely high interest rates. Additionally, the payroll loan is only available to use when running payroll.

How are companies, especially in the healthcare industry, using Payro’s Finance solution?

 Typically, these businesses find themselves in need of financing due to rapid growth or because they have run into a billing issue.

One company, an upstart home care agency, was experiencing rapid growth, prompting a hiring spree. As their payroll kept increasing, the gap between their bi-weekly payroll and the 30-60 days it took to receive their insurance remittances was proving to be an issue, and payroll financing was the perfect solution.

Another company, a special needs agency, experienced a technical malfunction when billing insurance, which delayed their remittances by a full month. Rather than taking on the risks of medical practice business loans, they turned to us to help them pay their staff while they waited for their remittances to come in.

If a company is looking for a one-time payroll financing solution, how can they determine if Payro is right for them?

When looking for a financing solution, they can determine if they are a candidate if they fall under the following:

      • Do you have established clients who pay for your services regularly?
      • Are you scaling your business because of increased revenue and need temporary funds to keep up with the increased staffing costs?
      • Or are you experiencing a temporary cash crunch due to seasonal changes?

If “yes” to any of these questions, then they are likely to qualify for a small business loan for payroll.

In some cases, businesses may need one-time financing just to get over the hump, while others may need to utilize payroll financing on a more consistent basis. Payro Finance is dedicated to providing the short-term funds that businesses need to keep their staff paid on time. These payroll financing loans are vitally important for many companies to keep their businesses running at full capacity. Without having to worry about how they’re going to make payroll, our clients can focus more on growing their company and planning for the future.

If your business requires short-term funding to operate efficiently, payroll financing may be the right solution for you.

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