It’s important for small business owners to stay ahead of trends concerning payroll financing, emergency business funding and payroll lines of credit options but often, an executive doesn’t always learn about financing until there is a problem.
When it comes to small businesses and nonprofits, the number one reason why a Line of Credit is set up is so payroll isn’t missed. Most people don’t know that missing or delaying payroll is actually illegal and can get a company into a lot of trouble.
There are many companies and nonprofit organizations that run into payroll issues, but as a busy small business executive, you might think your problem is unique. It isn’t. Probably every business owner or nonprofit executive faces a cash shortage at least once in a while.
After you have been through a close call of missing payroll, many often get a line of credit in place so that scary feeling never comes back again. Luckily, the ability to get a Line of credit in place has gotten a lot easier and faster.
What Are Payroll Lines of Credit?
Businesses have several choices when they need to borrow money for business funding but none of them are quick. There really isn’t a payroll line of credit per say but their is a line of credit that can be used for payroll.
Until recently, the only choices for a quick loan were cash advances from predatory lenders. Now, there is an inexpensive, new option. A line of credit from Financing Solutions. It costs nothing until used, requires no collateral or personal guarantees, and can be used for anything your business wants, including making payroll. To qualify, you need at least a 650 personal credit score and your businesses needs to do $400,000 per year in revenue (a nonprofit needs to be doing $200,000 per year in revenue).
Now, Payroll lines of credit allow businesses and nonprofits to very quickly get a line of credit set up so that the line can be used to make payroll, to pay an unexpected expense, or to take advantage of a new opportunity. Never before could a business line of credit be set up in 48-72 hours.
A Line of Credit has always been a backup plan but in the past, it would take months to get a Line of Credit in place from a commercial bank. That was even if you got approved.
In addition, a line from a bank would costs money regardless if the line was used or not.
What Are Your Options When You Might Miss Payroll?
For most small business owners, there are always a lot of concerns however paying your employees is always on top of that list and when you have difficulty making payroll, it is stressful. Thankfully, there are alternative lenders that can help.
A financing company, like Financing Solutions (www.fundmypayroll.com), can get you the quick business funding you need to prevent you from missing payroll. The application process takes only 2 minutes to fill out and you can have the money you need in your account in 48-72 hours (sometimes even faster).
In addition to making payroll, the funds can be used for any business purpose, such as purchasing equipment, paying business taxes or building up your supply of working capital. Best of all, Financing Solutions offers a very low repayment schedule. This allows you to pay the money back immediately, in a few weeks or in months, when your cash flow is stronger.
It Is Illegal to Delay or Miss Payroll
Most business owners or executive directors do not know that it is actually illegal to not pay your employees on time. There is a good reason why it is illegal and it isn’t just that the state/feds want to protect your employees. The state/feds want their cut of the payroll taxes.
So when you miss payroll it not only sends a red flag to your employees that something might be wrong with your company but you also run the risk of getting additional fines, audits or being closed down. You also run the risk of getting terrible PR and all of this could follow you for a very long time.
Making Payroll is One of the Most Important Tasks for a Small Business Owner
Your employees are often the first people your customers talk to before they decide to do business with you. Your employees also work behind the scenes, making sure your product or service is great.
As leaders, we all have a connection to our employees because they believe in your vision and making payroll is often moral decision.
All this comes to a halt if you miss payroll even once. Disgruntled employees don’t work efficiently and your organization’s moral can go downhill overnight.
Get that line of credit in place now. Apply for a Financing Solutions line of credit today. Even if you don’t need the cash now it is always good idea to have a cash backup plan, just in case.