Funding to Hire Fast

Hiring Fast in Texas: Paying Staff Before the Sales Arrive

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.

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Growth that you have to pay for first

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.

What one hire really costs before they produce

  1. Wages from the first day, including time spent learning.
  2. Employer payroll taxes. Texas employers report wages and pay unemployment tax to the Texas Workforce Commission quarterly, due by the last day of the month after the quarter ends.
  3. Equipment and uniforms the person needs on day one.
  4. Training time of someone already on staff.
  5. Insurance. Private Texas employers can choose whether to carry workers' compensation, though customers and contracts may require it.

Add these up before you hire, not after. The result is often noticeably higher than the hourly rate suggests.

A hiring plan, for illustration

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.

Hire in steps, not all at once

ApproachUpsideDownside
Hire everyone nowCapacity ready on day oneLargest cash gap, highest risk if work slips
Hire in two stagesGap is smaller; you see early resultsSlower start on the work
Use temporary help firstFlexibleHourly cost is usually higher

Three questions before you post the job

  1. Is the new work contracted, or are you hoping for it? Contracted work justifies a faster hire.
  2. How long will it take a new person to be productive, and who trains them?
  3. What is your plan if the work ends early, and what would it cost to part ways?

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.

Application details

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.

Common Questions

When are Texas unemployment wage reports due?

Quarterly wage reports and taxes are due by the last day of the month after quarter end.

Should I hire permanent staff or use temporary workers first?

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.

Must Texas private employers carry workers' compensation?

Most private employers can choose whether to carry it, though customers and contracts may require it.

What is the biggest hiring cash risk?

Paying wages for weeks or months before the work they do is paid.

Can sole proprietors apply?

Yes.

How much can I request?

$25,000 to $5,000,000.

%s

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.

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