Payroll Financing Comes to the Rescue for a Private Preschool
Since 1998 this preschool had done very well financially. It had always had full classes and the owner often talked about expanding to improve her capacity but when the recession hit, parents slowly began to cut back and the preschool started to see a decline in students. This preschool had an excellent reputation and was in a wealthy area so the owner knew it was just a matter of time before the students returned. She just needed to be patient and so the owner used all types of funding such as account receivable factoring and a working capital loan to carry her through the tough times.
One of the key ingredients to a great preschool is the teachers and letting go of the best teachers was out of the question so payroll funding was critical. So the owner of this preschool cut back where she could and survived the recession.
Students were coming back and the profits for the first time returned to the pre recession level and the owner slowly had paid off her debts to the factor and credit card companies. This owner had survived. However, there was one last payment that was due to the franchisee of $17,000 that if not paid on time, would legally allow the franchisee the ability to sell the business to someone else.
The preschool owner only needed a loan for 2 months because in that time frame, she would have generated enough profits to pay back the loan. The preschool owner called Financing Solutions and talked about her company. It was obvious that this was a good business and the loan was approved in 24 hours for $17,000 that could be paid back in as little as two weeks to 6 months.
The preschool owner jumped at the chance to borrow the money knowing that a bank loan would take too long to get and a factoring of accounts receivables would be a long term relationship costing her tens of thousands of dollars in interest. She really just needed a short term loan.
Financing Solutions (www.payrollfinancingsolutions.com) provides fast business loans of $5,000-$100,000 to good small businesses with sales of $500,000-$7 million that can be used for working capital.