Payroll Funding Through a Business Line of Credit
Article summary: A business line of credit is often the first tool a company turns to for emergency payroll funding. With Financing Solutions a business owner or a nonprofit executive director can have their line in place in 48-72 hours allowing you to fund payroll when cash flow is down.
Why Payroll Funding is More Important than You Think
- The number 1 reason businesses or nonprofits get a LOC is to make payroll.
- Missing or delaying payroll is one of the first signs to your employees that your company is not stable.
- Regardless of the reasons you think your employees stick around, the bottom line is that employees are working for you because they want a consistent paycheck and a stable company. When they don’t get it, the good ones will start to consider looking for new opportunities.
- It is actually illegal to not pay or delay paying your staff. If you do so you run the risk of the state or federal government fining or closing down your company. This will also cause the IRS to put your business under a microscope and the last thing you want is to have the government poking around in your affairs.
Where Can You Go for Payroll Funding
There is no reason nowadays to miss payroll. Financing Solutions (www.financingsolutionsnow.com) provides a line of credit that is easy to get in place. Additionally, it costs nothing to set up and is very inexpensive when you use it. Plus, if you have other emergencies or opportunities, a line of credit is an excellent backup plan.
Why a Line of Credit from an Alternative Lender is perfect for Payroll Funding
1. The credit line is perfect for emergencies like missing payroll, unexpected expenses, or a new opportunity. These issues occur all the time without warning and can affect even the most flexible budget strategy. With this business tool, you don’t have to sacrifice other areas of your company to handle them.
2. Alternative lenders like Financing Solutions are private companies. Therefore, they can lend you payroll funding at a fraction of the time that a regular commercial bank does.
3. Financing Solutions can have any lending approval standards it wishes because the company does not answer to government agencies. Government agencies often restricts who a bank can lend to. That’s why, when you turn to Financing Solutions, you only have to fill out a two-minute application for a fast decision. Most importantly, Financing Solutions will not even check your credit until you receive your offer letter and decide to move forward.
4. You don’t have to jump through hoops to qualify for a credit line from Financing Solutions. Your business or nonprofit needs to do at least $400,000 per year in revenue and has to be in operation for two years or more. Unlike commercial banks, which insist on a stellar credit score, they only require a 680 or better.
Your business will never be profitable if you have to keep taking all the income you earn to pay off debt, manage emergencies and pay bills. It’s time to stop worrying about payroll funding, get your cash flow under control and increase the stability of your business.