How Payroll Financing is Being Used as a Working Capital Loan
Some companies are looking to expand after having steady growth, but are having trouble getting a working capital loan or an increased line of credit from their bank. In most cases, the business owner is reluctant to outlay a lot of money in fear that if something doesn’t pan out, that they might miss payroll which would greatly affect company moral. (If you needing working capital funding.
Many companies are now using Financing to borrow money so that it frees up capital to be used to grow the business. This financing then frees up the company to buy more inventory, to hire more people, or to aggressively go after new business. In any case, most business owners know that sometimes there is a small window of opportunity to capitalize on an industry or customer and that a working capital loan will greatly help them.
Financing Solutions provides up to $100,000 to be used for whatever the owner likes. It doesn’t need to be just for payroll. The reason why the term payroll financing is used to describe the financing is because the lending is usually issued to viable small businesses that have been around for a while verses a startup who is still trying to determine their market.
The advantage of payroll financing is that it can be issued very quickly and that it doesn’t take up a lot of the owner’s time to apply. The working capital loan is also unsecured against personal or business assets and as long as your company has a history of profitability so that you can pay the money back, there is a good chance you will be approved. The best part of the lending is that it can be paid off with 7 days’ notice with no penalty. In a lot of cases, the financing is often used to bridge the gap between a service being performed or a good being delivered, and the eventual payment from your client. Once the client pays your invoice then many companies pay off the payroll financing money which makes the financing an economical use of capital.
At the end of the day, if you feel strongly that you can make a bigger profit with getting additional working capital, and that the additional money will only be needed for 4 months or less, then payroll financing is a good tool to allow your business to grow.
Financing Solutions (www.payrollfinancingsolutions.com) provides fast business lending of $5,000-$100,000 to good small businesses with sales of $500,000-$7 million that can be used for working capital.