Running a labour hire company is not an easy task at the best of times. So the last thing you need is strained cash flow impacting your business’s growth.
One of the biggest issues in the labour hire industry is longer payment terms. This might occur when a client takes months to pay an invoice while your contractors need to be paid on a weekly or fortnightly basis and equipment payments are required for an upcoming job. For many labour hire companies, this means having to consider labour hire finance options.
Existing finance options for labour hire companies
With tighter lending restrictions and market volatility, sourcing reliable and affordable labour hire finance has become increasingly difficult. Not to mention the added time and stress business owners must endure to find a suitable solution.
In the past, labour hire companies may have had to resort to financing alternatives, like business loans, credit cards, labour hire debtor financing, or labour hire bridging finance. While some of these options can be accessed and provide a short-term fix, they are often risky and expensive — and at the end of the day, they’re just placing the business further into debt.
For example, business loans and credit cards usually come with high-interest rates and exorbitant applications and ongoing fees. This can cause a massive financial strain on businesses, regardless of size. Not only that, but depending on the loan or alternative financing option you choose, you may be asked to use your business or personal assets as collateral — a massive stress for any business owner.
Due to tighter lending restrictions, you also risk being rejected when applying for credit products like small business loans or credit cards.
Lenders have these restrictions in place to ensure only specific types of businesses are approved, safeguarding their repayments but damaging your business's credit score in the process.
So with limited, risk-free options available, how can labour hire businesses stay afloat during periods of payment uncertainty? Meet Marmalade.
Marmalade — the sustainable answer to labour hire finance
Long payment terms are the biggest issue many labour hire businesses face daily. So wouldn’t it be great if you could get paid for your invoices as soon as you send them? With Marmalade, now you can.
Marmalade is a world-first in invoice payments, offering an innovative solution to an ongoing problem. Our platform allows labour hire companies to receive early payment for any eligible invoices and get paid almost instantly. No more waiting around for clients to pay invoices — with Marmalade, you can have the funds in your business account within 24 hours.
Here’s how it works:
Sign up to Marmalade and create an account
Issue invoices with your unique Marmalade Virtual Bank Account details
Select the invoices you want to cash-in
Get paid within 24 hours
Spend that money however you wish
Tip: Marmalade only works with account software platforms Xero and Quickbooks, so connect your account before starting!
Marmalade is the only payment platform designed specifically for invoices, which means you can say goodbye to typical pain points that come with sourcing alternative finance. Some of the features you can look forward to when using Marmalade are:
Minimal paperwork — With Marmalade, you can skip filling out time-consuming online forms and get paid sooner.
No security — Unlike cash loans or other credit financing options, we won’t ask you to provide collateral to use our service.
No credit risk — Marmalade absorbs all credit risk with non-paying clients, giving you the freedom to grow your business without worry. Unlike a lender, we won’t chase you for repayments.
Transparency — From no lock-in contracts to zero hidden fees or interest, Marmalade is a 100% transparent business. There are no catches, hidden gimmicks or nasty surprises.
With Marmalade on your side, you’ll be able to keep up with increasing overhead costs and better manage longer payment terms. Our platform gives you total control over your invoices, plus you’ll always be kept informed about the status of your upcoming and processed payments.
Marmalade was created to help propel businesses — we think there’s nothing worse than a brimming business being held back by limited cash flow. Find out how Marmalade can transform the way you manage invoices at your labour hire company by getting in touch with us today.
Trusted by hundreds of Australian businesses
Healthy cash flow is at the core of every business, so when things don’t go according to plan, it can have a flow-on effect across the company. Some of the common issues negative cash flow can present in the labour hire industry include:
Poor reputation — Word of mouth is crucial to the success of any business, so if negative feedback spreads, new contractors may not want to work with you.
Limited company growth — Limited cash flow can lead to your business missing out on expansion opportunities.
Keeping up with payroll - With invoices not being paid for 30, 60 or even 90 days plus, having the funds to manage weekly payroll can inhibit growth and mean missing out on bigger jobs
Due to the nature of the business, the biggest cause of cash flow problems for labour hire companies is long payment terms. As a gesture of goodwill, companies will often allow clients months to pay any invoice, which can become a problem if contractors and staff are paid weekly or fortnightly.
Marmalade removes this financial stress for companies like these with their early invoice payment solution, giving businesses timely access to their money.
Aside from using Marmalade to stay on top of their invoices, labour hire companies should also consider formulating a cash flow budget. This can help to anticipate and plan for potential profit falls.
Speak to the Team
For more information on how Marmalade can revolutionise your Labour Hire business with instant invoice payments, please get in touch TODAY!
Quick Online Enquiry
Takes only a few seconds and will not affect your credit rating.