What to Say to a Payroll Funding Company
You’re about to miss payroll and you start looking for a quick line of credit by typing payroll funding company in Google. Whether it’s a client payment (or payments) that are late or an unexpected business expense that came up; you’re afraid of sending shock waves through your company by missing payroll. Telling your employees they will have to wait to get paid is the LAST thing you want to do both morally and legally.
Many business owner’s or nonprofit executive might say I’ll just miss payroll but missing payroll also puts you in jeopardy with the Federal or state agencies. You will also lose the confidence of your employees. There are payroll funding companies designed specifically to fund businesses quickly and easily. Now, those dreaded employee discussions don’t have to happen.
A Payroll Funding Company is typically an alternative lender that acts like a commercial bank but moves at the speed of a race care. A payroll funding company, like Financing Solutions, will offer a Business Line of Credit to both small businesses and nonprofits at a fraction of the speed of a bank and sometimes at a fraction of the cost.
How Should You Prepare For The Discussion With Your Payroll Funding Company?
The best way to prepare for a conversation with a payroll funding lender is to be honest. Have your income statement/balance sheet in front of you during the discussion or at least make sure you know you past years revenue and also your personal credit score. Credit Karma is a good place to get a free credit score. Your initial conversation will be critical in determining whether or not you will be granted a line of credit. If the lender discovers any dishonesty or misinformation, you probably won’t be getting that line of credit. The other thing that could happen is you get approved over the phone and then when you produce different results in your documentation, you will be rejected.
What is a Payroll Funding Company Looking For?
A payroll funding company is basically looking to see if you meet the approved criteria usually based on revenue per year, gross profit margins, AP/AR, and existing debt. They might want to know why you need the money and if you will be using the Line of Credit immediately. In general, they want to know if you will be able to pay the line of credit back. As long as you can pay the line back, you will be approved. It’s a lot different then in the olden days when the only option you had was with a commercial bank who require collateral and personal guarantees.
Many of the people working at payroll funding companies deal with good business owners everyday. They know that unusual circumstances arise and it doesn’t mean that you are running a poor business or nonprofit if your cash flow is sometimes negative. Every business owner or nonprofit executive has ups and downs in cash flow. You are not unique in that regard.
Meeting payroll is one of the most important things a business owner needs to do to avoid the risk of losing the business. Talking to a payroll funding company in a straightforward, honest and informative way will grant you the fastest way to get through your payroll crisis.
How Does Financing Solutions Line of Credit Work
Financing Solutions had been around since 2012 and is rated 5 stars/A+ by the BBB. Financing Solutions provides a Line of Credit to small business and nonprofits who have yearly revenue above $400,000 and $200,000 respectfully.
The Line of Credit can be used for whatever a business owner likes. There are no restrictions however the #1 reason why a line of credit is used is often to make payroll. When Financing Solutions first started is was called Payroll Financing to reflect this fact. Overtime, Financing Solutions re branded itself with a name that better reflected the fact that the line of credit could be used for anything.
Benefits of Financing Solutions Line of Credit
One of the owners of Financing Solutions, Stephen Halasnik, often talks about his own personal experience over the past 25 years when he has had to set up a line of credit. Mr Halasnik commented, ” it was and is torture working with a commercial bank but if you are a good business person or leader, you always make sure you have a line of credit in place. Even if you never have to use it”.
As result, Financing Solutions was one of the first companies to provide a small business line of credit that costs nothing to set up and nothing until used making it a great back up plan. Especially when it comes to making sure you don’t miss payroll.
The Line of Credit takes about 48-72 hours to get in place but could be faster as long as documents are sent in quickly. These documents are usually very simple like an income statement, some banks statements, and some other simple to get documents.
How to Move Forward With Payroll Funding
The first step is to fill out an online application with Financing Solutions. The online application will take 2 minutes or less to fill out. There is no obligation and no credit check will be done until you receive your offer letter and decide to move forward.
A Relationship Manager will call you and go over the offer letter to make sure you understand who the line of credit works. The offer letter is only one page and the program is really simple to understand. The line costs nothing until used and when you do use it, it is inexpensive. You can pay the line back at any time.
Every business or nonprofit should have a line of credit, just in case. It makes complete sense and it may just solve a serious problem with payroll, another expense or even a new opportunity. Apply today!