What Are My Payroll Funding Options for My Business
Paying your employees is one of the most important functions for a small business owner. If you are having difficulty with this task, you need to be aware of the payroll funding options for your business.
Satisfied clients are the result of good customer service. Exceptional customer service is performed by pleasant employees and workers are happy when they are paid on time. This is why the task of making payroll is so critical. There are payroll funding options available but it is important to know which choice is right for your small business.
Various Payroll Funding Options
When you need immediate business funding to make payroll, time is of the essence. Typically, you only have a week or two to spare before you have to inform your employees that their paychecks will be late. The consequences of such an announcement would be devastating.
Instead of calling your employees in for an emergency meeting to tell them they won’t be getting paid this week, you should first call a cash advance company, like Financing Solutions (www.fundmypayroll.com). This is the best call you can make for instant business funding.
Financing Solutions can get you the cash you need in less than 48 hours. The process is quick and easy. You simply sell your account receivables and receive cash based on a percentage of their value.
When you have a problem making payroll it is usually a temporary situation, and a cash advance company offers a short-term solution. With Financing Solutions, you can repay the money quickly, as soon as your cash flow improves. Most businesses that receive a cash advance are able to pay the money back in a few weeks or months.
Best of all, you are not limited in how the money is used so it is not only for making payroll. You can use the money from your cash advance for anything, such as purchasing equipment, building a working capital fund or taking advantage of a profitable business opportunity.
You may think a bank is the only place to go for a small business loan, but this is not true when it comes to payroll funding. A traditional bank will require you to have enough collateral to cover the loan and it could take several months before you get your money. If you don’t already have a business line of credit with the bank, this is not a viable solution for payroll funding.
There are also factoring companies that provide emergency business loans. They can get money to you faster than a bank but it could still take several weeks, which is time you don’t have if you need to pay your employees right now.
In addition, by using a factor, your employees will then know that you are having financial troubles and they may decide that they should leave before things get worse. This could end up costing you much more in the long run as you may then need to spend additional time and money to hire new employees.
The Dangers of Missing Payroll
For any business with employees, making payroll is one of the most important functions. Your employees help to manufacture your product, interact with customers and keep your establishment running smoothly. All those things could be in jeopardy if you have to miss payroll.
When employees are unhappy or worried, you business can suffer the consequences. It can have an effect on quality control and company culture. These are the issues most noticed by customers. To prevent even more unforeseen problems, it is best to move mountains in order to make payroll.
Changes You Need to Make When Missing Payroll is an Issue
The stress of not being able to make payroll can sap your focus and cripple your business growth. It is something no entrepreneur wants to go through more than once so it is wise to take steps and make sure it does not happen again.
If making payroll and having cash flow issues become commonplace, it may mean that you need to change certain business practices. For example, you could require new clients or perpetually late paying customers to pay a portion of their bill upfront, instead of waiting the usual 30, 60 or 90 days for an account receivable to become due. You may also closely examine your employee structure and job functions to see if money can be saved by combining jobs or eliminating positions.
Whatever you do, make sure you keep Financing Solutions in mind for emergency business funding. You never know when you might need it.