Looking For a Bank Line of Credit, Payroll Financing is the Way to Go
PAYROLL FINANCING OR A BANK LINE OF CREDIT
Established small businesses with revenue in the $500,000-$5 million range often have it hard, you are often too small to need a bank line of credit and too big to have enough available credit to take an advance of cash against your credit cards. As a result, when there is a time when you have a cash flow problem and you might miss payroll, where do you turn? To payroll financing companies.
PAYROLL FINANCING IS A FAST ALTERNATIVE TO THE BANK LINE OF CREDIT
Payroll financing is now the best alternative often for business that thought they needed an emergency business loan from a bank. As long as you have an established profitable business companies like Financing Solutions will give you quick business financing that overall, is much cheaper than a bank line of credit.
At first glance, a bank line of credit appears to have a cheaper interest rate however, the overall costs of that type of line really are more expensive than payroll financing. The reason; a bank line of credit often requires an application fee, a service fee, yearly reviewed financials, interest charges plus a yearly bank renewal fee. Many businesses, that keep the line in place for an emergency often find that they will not use the bank line of credit for years but are paying large fees just in case loan is needed.
ARE CREDIT CARDS AN ALTERNATIVE
In regards to a cash advance on your credit cards, if you plan in advance you can get an allowable advance of maybe $5,000-$30,000 only if your credit is excellent and if you have used that credit card for a number of years. Your credit card loan will also be reported on your credit report and could limit your ability to get future loans for other funds like equipment financing.
Payroll financing is perfect for companies that thought they needed a short term business loan from a bank. You can borrow as much as $100,000, you can spread the repayment from 7 days to 26 weeks , you can have the money wired to your account in 24 hours, there is very little paperwork required, and you can have an approval within 30 minutes.
Often, small businesses will use Financing Solutions once every couple of years when one of the small businesses clients are delayed in making their payments, when there is an unexpected expense that caught the business by surprise, when the business has a seasonality to it, or a multitude of other reasons.
Another good reason for getting payroll financing is that often, small business owners are working so much in their business that they do not have the time to deal with all the paperwork or meetings required in other funds.
THE PAYROLL FINANCING PROCESS
The Payroll Financing process involves a 30 minute verbal interview so that a Managing Partner can understand your business. At the end of that interview, Payroll Financing Solutions will give you a thumbs up or thumbs down. After that interview, a funding agreement will be sent for your review and approval and then if you wish to move forward, a small list of backup documents will be asked for such as bank statements, client contracts and other supporting documents. If everything matches up against the interview, then the money will be wired to you.
The payment terms are pretty simple. The repayment will be spread out over up to 6 months with a Monday to Friday daily ACH of your business primary business account. 2/3rds of that payment will go to paying down your principal and the remaining will pay the service loan fee. The financing is not recorded to any credit agency and all additional funds requests will be favorably considered.
Many small businesses who use this type of short term funding program often only use the money for 1-2 months. Owners often feel like the funding saved them from losing a lot of sleep, keeps their staff moral high, and gets the business through a stressful time.
Financing Solutions (www.payrollfinancingsolutions.com) provides fast business funds of $5,000-$100,000 to good small businesses with sales of $500,000-$7 million that can be used for working capital.