Why Emergency Business Financing is Needed for Small Businesses
You may be asking yourself, why would someone need emergency business financing and where would I get it? The business world is always changing and sometimes unexpected events can occur causing the business owners to need immediate funds to tie them over. That is where emergency business funding comes in.
Why Emergency Business Financing Might be Needed
Emergency business financing can be used for any reason but most often, the funds are used to make payroll. Other times, the financing can be used to a get a piece of equipment that may have broken down or when an unexpected expense came about such as a large increase in workers’ comp insurance that must be paid. In all of these cases, one might have a good business that is profitable but often in small businesses, your cash is tied up in accounts receivables ( what others owe you).
Options for alternative lending
Once a business owner determines that he definitely needs a business loan, the next step in the process is considering where to obtain your quick business loan from. There are three possible options: Those options are: go to a bank, look at an alternative financing company, or talk to some friends/family. The bank would most likely be your first idea, but the bank is not the best choice in a situation that requires immediate action to be taken. The amount of time it takes to apply for a bank loan is tremendously long and has a high risk of rejection if you are in this emergency state in the first place.
Even if the bank eventually approves of the loan, by the time the money actually shows up in your account it could already be too late to make payroll or pay that expense. The easiest solution would be to get the funding from friends/family but while this might be easy at first, it also comes with the consequence of possibly ruining the relationships. Your best choice would be to look at alternative financing companies, which are privately owned companies that specialize in emergency business funding allowing your business to get the cash advance you need quickly.
Financing Solutions (www.fundmypayroll.com ) is an alternative lender that was specifically designed to help companies that need fast business funding . Unlike banks that have time consuming applications that seem almost perpetual, Financing Solutions only needs a 15 minute interview over the phone along with a few simple business documents to get you approved. Once your review and sign your contract, the money will then show up in your account within 24 hours with you having to make small payments thereafter.
Financing Solutions is owned by two experienced small business owners who have had to go through borrowing money themselves and making payroll in previous businesses they started in the past. Both FS owners learned that banks do not have that same understanding that an alternative business such as Financing Solutions has, and with the regulations that banks are going through now, banks are geared more towards large business lending and cannot give the quick response that is often needed in emergency situations.