A big contract or a busy season can mean hiring this week and being paid next quarter. Here is what a new employee costs before they produce, and how to plan for it.
Apply Now →When work arrives faster than a team can handle, the instinct is to hire. The difficulty is timing. A new employee is paid weekly or biweekly from the first day, while the work they do is invoiced later and paid later still. If a customer pays on 30-day terms, a hire made today may not produce cash for two months.
Add these up before you hire, not after. The result is often noticeably higher than the hourly rate suggests.
Suppose an invented contractor takes on a larger job and decides to add three crew members. Each costs a round $4,000 a month all-in during the first two months, before the job's first invoice is paid. That is $24,000 of staffing cost before revenue from the new work shows up. These are made-up numbers, not our terms. The point is to calculate the gap between first payroll and first payment, then decide how much of it to cover with outside funding versus your own cash.
| Approach | Upside | Downside |
|---|---|---|
| Hire everyone now | Capacity ready on day one | Largest cash gap, highest risk if work slips |
| Hire in two stages | Gap is smaller; you see early results | Slower start on the work |
| Use temporary help first | Flexible | Hourly cost is usually higher |
Owners who write those answers down tend to hire the right number of people at the right moment, and to know in advance how much cash cover they want behind the decision.
We fund $25,000 to $5,000,000, with funding in as little as 24 hours. The application takes about five minutes with a soft credit pull. Sole proprietors can apply. If you are hiring this week, start your application.
Quarterly wage reports and taxes are due by the last day of the month after quarter end.
It depends on how certain the new work is. Temporary help is more flexible but usually costs more per hour; permanent hires cost less per hour and add a longer commitment. Contracted work supports hiring faster.
Most private employers can choose whether to carry it, though customers and contracts may require it.
Paying wages for weeks or months before the work they do is paid.
Yes.
$25,000 to $5,000,000.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
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