Demand for Payroll Funding for Businesses Jumps 400%
PAYROLL FUNDING IS NEEDED AT THE END OF THE YEAR
Financing Solutions, a leading provider of emergency payroll funding so that businesses can make payroll, announced a nearly 400% increase in demand for companies seeking fast business loans. Managing Partner, Stephen Halasnik commented, “November-December are always the busiest times of the year for us because small businesses really see a big pickup in their sales in the 4th quarter. With the increase in sales also comes an increase in expenses, so cash is often tight. This leads to companies often not having enough cash on hand to make payroll”.
BUSINESS OWNERS DON’T WANT TO MISS PAYROLL
Mr. Halasnik added, “The last thing a business owner wants to do is miss payroll, especially during the holidays and I think most business owners are very shocked to see how many of their employees often live paycheck to paycheck. As a result, missing payroll for the business owner is not only illegal, it also has a huge effect on the moral of the company. The holidays are of course an important time of the year where a business owner can really demoralize his staff if payroll is delayed”.
FINANCING SOLUTIONS IS UNIQUE
Financing Solutions has a unique niche in the financing marketplace. They deal with small businesses that have yearly sales in the $350,000 to $7 million range that need up to $100,000 to make payroll. Financing Solutions advantage is that it moves super-fast and can issue fast business loans in the same day having developed an application process that can give the business owner an approved/not approved in 20 minutes.
Mr. Halasnik continued, “The owners of Payroll Financing over the last 25 years have built several other companies themselves and completely knows what its like to have a good business that sometimes is short on cash to make payroll. What most people don’t know is that the last thing a business owner wants to do is miss payroll. It just has such a huge effect on not only the employees, but also on the business owner psyche. We get so many thank you’s from business owners that we have helped because they are now able to pay their staff without letting the staff know that there was an issue. The business owner also doesn’t have to turn down business nor lay anyone off. As you would expect in a small verses big business leadership standpoint, small business owners care a lot about their people and care a ton about their staff.”
PAYROLL FUNDING IS GOOD FOR EMERGENCY BUSINESS LOAN SITUATIONS
Financing Solutions is one of only a few payroll funding options that help business owners meet payroll. It recognized that getting a new business line of credit from a bank cannot be turned around fast enough and that a commercial line of credit now requires being backed up by an unprecedented amount of an owners personal assets. Financing Solutions is an unsecured spot funding arrangement that uses the businesses accounts receivables as collateral, but unlike Factoring companies, invoices are still paid directly to the small business. The funds borrowed are paid back in small payments over 7 days to 6 months depending on the business owner wishes.
Mr Halasnik concluded, “Let’s be clear here, we are providing emergency funds to GOOD companies. These companies often have a short term problem but once we help them through a couple of months, they get back on track. The perception from other financing companies or banks is that the worst thing a business owner can do is miss payroll and if the owner misses payroll or is borrowing money to make payroll, then that means the business is on its way down. We know first hand that this is not the case with many businesses.”