Alternatives to Working Capital Fund, Why All Owners Need to Have One
All business is unpredictable so a business owner needs to be prepared for anything including not having enough money to make payroll. Nowadays trying to get a working capital fund from a bank is extremely challenging and it can be very expensive to have an open line when it isn’t being used.
There is a new fall back strategy available to business owners so you can be prepared if sales increases unexpectedly or if you have an expense that hits you out of the blue. It is called Payroll financing or payroll funding (www.fundmypayroll.com) and it is really geared towards small business who need under $100,000 to fund their payroll.
The fund can be issued in 24 hours or less or you can talk to the payroll funding company and they can issue a line of credit allowing you to have access to your line at anytime during the year.
The payroll funding method is much smarter then going through an accounts recievable factor because in the long run, it will be cheaper for the business owner. The fund can also be used along with factoring and the payroll funding will not effect your credit rating.
Financing Solutions (www.payrollfinancingsolutions.com) provides fast business fund of $5,000-$100,000 to good small businesses with sales of $500,000-$7 million that can be used for working capital.