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Payroll Funding: Not Missing Payroll is Part of the Owner’s Job

Client Case Study

Sean is a CEO of a small healthcare company, and is one of Financing Solutions’ clients.  He was about to miss payroll as his bank credit line was almost maxed out.  The following is an excerpt from an interview with him.

Business History

“I had been in business for 11 years. Over the last 4 years, my business grew from $1 to $7 million. It felt great. I had prepared myself well for the growth both from an infrastructure and financial standpoint.  Having a large line of credit with my bank in place, I thought it was a no-brainer that when I needed to increase my line of credit that my bank would come through.“

His own bank couldn’t come through

“However, when I called my bank fund officer, he told me that it might take him 2-3 months to increase our line. I was shocked and angry at myself for not getting an earlier start on increasing the line. Missing payroll was a discussion that would completely ruin our company morale and growth. I knew that I had to find another option. Having used a factor years ago, I knew that the factor would not move fast enough for me and the factor really would want a longer term relationship. I knew that another bank would take months to give me any type of answer. I really felt that I could solve this problem without asking my family or friends.  Plus, if you do not own your own business, you just don’t understand why someone who owns a business might miss payroll.”

Financing Solutions worked quickly

“The PEO (employee leasing company) that I use mentioned a company called Financing Solutions (www.financingsolutionsnow.com) . They said that Financing Solutions provides lines of credit to small businesses and nonprofits.  I spoke to one of the owners, Steve, on the phone and he asked me a lot of questions about my business. It was obvious that he really understood that I had a good company.  It shocked me when he told me that they could have the money I needed wired in two days so I could meet payroll. The terms were very reasonable and really made it a no-brainer. Now, I have a backup to my bank line of credit for any cash flow emergencies I might have.

Employee morale was saved

I lost no sleep over this. None of my employees (other than my CFO) ever sensed there were any financial issues.

After 18 years of owning a business, this was the first time I was in danger of missing payroll. I guess I’m truly an ‘experienced business owner’ now.“

Financing Solutions (www.financingsolutionsnow.com) was one of the first companies to provide a short term, unsecured, fast line of credit for working capital to viable companies, allowing one to have a funding resource better than a bank or factor so there is no missed payroll in times of increased sales or unexpected expenses.

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