Can’t Pay Your Employees, Can Your Bank Give You a Quick Business Loan?
Missing payroll is probably the worst thing a business owner can do. Not only does it send the wrong message to your employees about the viability of the company, and their jobs, but it can really get you in hot water with the government. Times like this, you may need a quick business loan from your bank but will they really be able to help you.
If any of your employees complain to the state, before, during or after you stop paying, the state can come in and fine you a significant penalty. In the worst case scenario’s, the state can also close your operations. The reason may not have to do so much about workers’ rights but more to do with the idea that each time you pay your employees; you are also paying state/federal taxes. The government gets pretty upset when they don’t get their money on time; and anyone who has dealt with an audit knows that the last thing you want to do is have auditors looking closely at your business.
The best thing for a business owner to do when you can’t make payroll is to try to borrow the money and get quick business funding. Financing Solutions began operations specifically to provide funding from $5,000-$100,000 in 24 hours to good businesses that has an unexpected expense or a large increase in sales. You have a 90% chance of getting money regardless of your credit score.
Another quick business loan option is to reach out to your friends and see if they can provide you with the money until you get everything straightened out or if you have enough available funds on your credit cards, max out on that.
It might also be a good idea, if you haven’t already done so, to reach out to your clients and see if they can accelerate their payment maybe at a 3% discount.
A bank will typically take 6-8 weeks for a loan against your home and longer for a business loan. This is not your ideal quick business financing. Instead, many times a business owner will use an alternative lender like Financing Solutions so it can buy time to get a business loan or to right the ship.
Finally, once you have paid your employees, it is time to take a closer look at your future financing options, business expenses, and sales to ensure that not paying your employees, never happens again.
Financing Solutions (www.payrollfinancingsolutions.com) provides fast business funding of $5,000-$100,000 to good small businesses with sales of $500,000-$7 million that can be used for working capital.