If you can’t pay your suppliers, you may try to barter or negotiate for better terms. However, when you can’t pay your employees, this is a more complicated issue and you will need to know what steps to take.
An inability to make payroll is something every small business owner dreads. It is one of the most important tasks for a business owner so when you can’t pay your employees, it is vital to make the right decisions so you can satisfy your workers and save your company.
What to Do When You Can’t Pay Your Employees
When you can’t pay your employees, it can seem like the beginning of the end. Nevertheless, it is typically due to common problems, such as a late-paying client or a seasonal low in sales. Thankfully, there are steps you can take that will allow you to meet your next payroll.
The first step you should take is to call a cash advance company, like Financing Solutions (www.fundmypayroll.com). They can provide the money you need in as little as 48 hours.
With Financing Solutions, all it takes to apply is a 15 minute phone call. You will receive an answer regarding your application the same day and, after supplying the supporting paperwork, the money will be wired to your account.
Best of all, there is no long term commitment. You can repay the money in a few weeks or months, when your cash flow is stronger. This is an easy way to get the fast business financing you require to make payroll.
What Can Happen When You Can’t Pay Your Employees
Missing payroll is not simply a matter of having unhappy employees. The consequences can be severe and damaging to your business.
For example, you might not be aware that unpaid employees can actually file a claim with the state for overdue or outstanding wages. Also, if you are not making payroll on a regular basis, chances are that you are having problems keeping up with payroll taxes as well. This can leave you vulnerable to extensive fines from the Internal Revenue Service.
It’s not only the external organizations that can cause problems. Your employees may also decide to spread their displeasure about paychecks to your customers in the form of poor service and bad attitudes.
How Can You Avoid Missing Payroll in the Future?
Solving your payroll issues one time does not guarantee that it won’t happen again because the same problems that caused the crisis may still exist. Therefore, it is vital to make some significant changes to the operations or policies of your business.
Improving your cash flow should be the priority but this is not always easy. One thing you can do is to adjust your billing structure. You might have to give your customers only 30 or 60 days to pay, instead of allowing them to wait 90 days. It may also be helpful to offer incentives for early payment and to hire collection companies to pursue unpaid debts.
Another way you can get assistance with recurring payroll issues is to contact Financing Solutions. They can help to resolve your financial issues and get you the instant business funding you need to keep your company growing and thriving.