Nonprofit Businesses Are Using Payroll Financing for Cash Advances
You may be surprised to learn that nonprofit businesses are using payroll financing for cash advances. Of course, not for profit businesses come with their own unique set of issues but maybe payroll financing can help your business, too.
There are close to one million public charities, approximately 100,000 private foundations and more than 400,000 other types of nonprofit organizations. Each one is different from the others, but the one thing that unites them all is the need for cash. More and more of them are turning to payroll financing for help.
How Payroll Financing Can Help Nonprofit Businesses
Not for profit businesses do great work for the people and communities they serve. They help those who cannot help themselves, support government and regional operations, and act as a beacon of light for many who would be lost without them.
Nevertheless, most people do not consider what happens when the nonprofit business itself needs assistance. Many people just assume that they can have a fund drive or apply for a grant from the government and then everything is fine. This is far from true.
The fact is, calls for help from the public in the form of contributions and gifts are often not enough. There are government agencies that agree to help, but everyone knows that any dealings with government tend to be agonizingly slow and covered in red tape. Not for profit businesses need access to fast cash in order to continue doing the good work they do.
This is where cash advances from a payroll financing company can be most beneficial. A cash advance company, like Financing Solutions (www.fundmypayroll.com), can provide immediate business financing in as little as 48 hours. The funds can be used to make payroll, purchase supplies, or act as a business bridge loan to help tide things over until government or other long term funding sources become available.
All it takes to apply for a cash advance is a 15 minute phone call and you can receive an answer on your application the same day. Most importantly, the funds can be repaid quickly, when your cash flow is stronger or after government money has come in.
With for profit businesses, waiting for account receivables to come due is often a big problem. Businesses that operate under 501c3 rules often have a similar issue, when people pledge money to help but you still have to give them time to pay. This can make it tough when the business has to pay its own bills today. Financing Solutions can help solve these and other quick business financing problems.
The Difficulty for Nonprofit Businesses in Getting Traditional Business Loans
Every business, at one time or other, will need a quick business loan to get through a rough patch. Not for profit businesses are no exception.
Most small businesses cannot qualify for an emergency business loan from a traditional bank. For nonprofits, the situation is even worse. In addition to not having the collateral to cover the cost of a loan, they also must contend with unpredictable revenue streams that may change all the time and make it hard to complete all the paperwork. As a result, banks consider it risky to loan money under these circumstances.
Other Ways to Help Your Nonprofit Business
Nonprofits have a big job to do. With a slow economy and government cutbacks, many people need assistance so there is much to be done. It can easily become overwhelming, but here are a few tips to help make it easier.
There are only so many hours in the day, so use them wisely. Investigate ways to combine tasks and streamline operations to help things run smoother and get more accomplished each day.
You can also reorganize priorities and personnel to ensure you have your best people working on the most important jobs. This can also serve to improve your focus and stay on track with your mission.
Another way to help your not for profit business is to contact Financing Solutions. They are a good friend to have on your side, just in case.