Short Term Business Financing Often Help Companies With Payroll
Short term business financing is, for really the first time in history, being offered to small businesses through alternative lending companies and short time business lenders. This is helping take the pressure off of business owners who have good businesses but don’t have a business line of credit. Most small business under $7 million in sales usually are using existing cash flow to finance their business so when their is a bump in the road with say a customer paying their bills late, it really can affect the ability of the business to make payroll. Combining this with the fact that a majority of small businesses get 25% or more of their business from one customer, that delay can cause a major impact on paying your staff or bills.
ALTERNATIVE LENDERS OVER THE LAST SEVERAL YEARS TO THE RESCUE
It isn’t like the alternative lenders are altruistic and are looking to help like a not for profit but the ability for smaller businesses now to get short term business financing is really helping more and more businesses today survive. Alternative lenders have picked up where banks and traditional factors have not be able to help. Alternative lenders today are able to help with emergency business loans where a company needs an answer in the same day of necessary or if the company needs short term business financing to get them to a period where that waited check does come in. There are many small businesses that are using alternative lenders in place off the bank because the need for funds might only happen once every few years. As a business own, the worst thing you can do is delay paying your employees and as a result, having a lender you can turn to is a must have instead of a nice to have part of one’s tools.
WHY DOES FINANCING SOLUTIONS NOT SHY AWAY FROM LENDING MONEY FOR PAYROLL
If you tell any bank or Factor that you are about to miss payroll and that is why you need the financing, you will be looked at with extreme caution. That caution being that the banker or factor just have never run a small business. They don’t get that a business might be profitable but short on cash and that the business might normally never needed the cash in the past. The owners of Financing Solutions have built several small businesses over the last 25 years and have a first hand experience of what it is like to run small businesses, what it is like to work with banks, what it is like to deal with Factors and what it is like to run into a situation where you need short term business financing to get your through a crisis. Financing Solutions is one of only a few lenders that have built its business on the idea that a company that is calling to borrow money so they don’t miss payroll doesn’t indicate that the company is a poor one and in fact, Financing Solutions has built their business based on helping business owners make payroll.