Are you worried that you can’t afford to cover your employee’s payroll this week? No need to stress. Now, you can stop worrying that you won’t be able to dole out checks to your hard-working staff come payday. Today, there are payroll funding solutions created especially for business owners who have run into an emergency that’s left them unable to afford their regular payroll expenses. Apply for payroll financing and get the cash you need to cover payroll costs fast!
Avoid a Payroll Funding Emergency
Everyone looks forward to payday, right? Wrong!
If you can’t pay your employees, payday can turn into a nightmare. You aren’t the first employer to face a payroll emergency, and you won’t be the last. Most employers face financial shortages from time to time, but knowing where to turn when you face a financial crisis can keep your business from falling apart.
Making payroll is one of the biggest responsibilities that employers face. In fact, your ability to pay employees can make or break your business. Failing to pay employees for the time they have clocked is a sure way to lose valuable workers. Luckily, that’s not a risk that you have to take when you take advantage of payroll funding.
Call Us Today at 704-904-0774 to Find Out More About Payroll Financing!
Why Should You Apply for Payroll Funding?
Let’s face it, life doesn’t always abide by our expectations. Sometimes, despite adequate preparation and putting forth our very best efforts, we’re still hit with unforeseen emergency expenses or circumstances that may cause us to get behind. For business owners, these pitfalls can carry even heavier consequences by affecting their ability to pay their employees. Then one person’s misfortune can quickly turn into the misfortune of many.
Some companies deal with seasonal shortages and may not have the savings to cover payroll costs throughout the year. Other new businesses that are just starting out might not have begun earning enough profits to cover payroll expenses. Meanwhile, there are those that are growing so fast that they deplete their working capital in an effort to keep pace with their growth rate. And sometimes, companies deal with emergencies such as unexpected equipment repair, delayed payments from customers, or other unexpected costs that cause them to get behind. Whether or not your business has ever encountered a cash shortage, if you’re a business owner you need to have a plan B in mind for when times get tough. This is especially important if you don’t have a large surplus of cash to cover financial emergencies.
No one wants to have to break the news to their employees that they’re unable to pay them for their time and effort. Even the most devoted employees expect to receive the compensation they’ve earned for the work they put in. Luckily, thanks to payroll financing, employers can keep their promise to pay their workers so that employees are able to receive the money that they earned on time and as expected.
If you’re a business owner who has encountered unexpected expenses or circumstances and you’re worried that you won’t be able to afford your employees’ payroll, then payroll financing could be the funding solution you’ve been looking for.
The Benefits of Working With Payroll Funding Companies
Payroll funding was created to help business owners maximize their working capital when they’re in a pinch. Not only are payroll loans suitable for covering payday expenses, but they can also help to cover all kinds of emergency costs which might have caused your business to get behind on its accounts payable. We understand that life is full of unexpected twists and turns. If your business has recently encountered unexpected expenses that have left you in a financial bind, we’re here to help you get back on track. Payroll financing was created for circumstances just like yours so that you have time to put the pieces back together without feeling financially insecure.
Payroll funding companies are perfect for:
- Covering Emergency Costs
- Businesses Experiencing Rapid Growth
- Businesses Involved in the Service Sector Such as a Temp Agency
- Honoring Your Promise to Pay Your Employees on Their Expected Pay Date
- Short Term Business Loans
- Anytime You Need Access to Quick Cash
Payroll Funding to Help Cover Payroll and Taxes
Recruiting and retaining high-quality employees is not easy. Business owners often must deal with high employee turnover rates and managing operating costs while being short-staffed. If you’re unable to deliver consistent, regular payroll payments to your employees, you run the risk of losing your best workers. Timely payments to your staff offer your workers the security of knowing that they will get the funds they’ve earned when they are promised. It also offers business owners security as well. That’s because with payroll financing, business owners can pay their workers as expected and this helps make it easier for businesses to retain their best employees. Plus, it saves business owners from having to face the embarrassment of breaking the news to their staff that they won’t be making payroll.
Learn About All of the Other Types of Business Loans Which Are Easily Available Through Your FundingTree!
Payroll Funding Companies
The best thing about payroll funding is that financing is in place to ensure that when it’s time for you to make your payroll as well as pay your payroll taxes, you’ve already got it covered. That’s because payroll financing is usually structured as a loan that relies on your business’s financial assets. The most popular financial asset used for securing payroll loans is accounts receivable. Basically, you’ll simply sell your invoices to a lender who offers payroll funding. They advance to you the funds you’ll need in order to make payroll and in turn, they will then collect the unpaid balances on the invoices you sold to them.
If you use your accounts receivable as collateral to secure the loan, you sell your business’s unpaid invoices to a payroll funding company.
First, you determine which invoices you want to turn over to the payroll funding company.
They will then total up the amount due on the invoices that you’ve provided to them and will advance to you anywhere from 80% to 95% of the invoiced amount. This process provides the working capital you need to pay your employees.
When the time comes to collect payments on the funded invoices from your customers, the payroll funding company will typically work directly with your customers in order to accept their payments. They’ll deduct the amount that you owe them for the funds that they have already advanced to you off the top of the customer’s payment, along with a small financing fee that usually is between 1% and 3%. The payroll funding company will then forward to you the remaining balance from the invoice payments they’ve collected from your customers. It’s a perfect solution for small business owners so they have access to the funds they need and can afford timely payroll payments to their staff.
Using Invoices as Collateral to Secure a Payroll Loan
As previously explained, the most common form of collateral for securing payroll funding is the borrower’s outstanding invoices. Payroll financing isn’t complicated when you work with the top payroll funding companies. When you provide invoices that are from creditworthy customers, the process is quick and easy, providing you with the working capital loan you need in no time!
With most payroll funding loan agreements, the borrower sells their invoices to the lender and the lender advances them the cash they need to cover their immediate costs.
It’s a proven strategy that’s often used by small business owners to access the working capital they need in order to cover their employees’ payroll. But many companies use it as a method for covering additional immediate cash flow needs as well. Payroll funding is designed to assist with covering payroll but can also be used to cover other day-to-day operating expenses. It’s an effective way for businesses to receive the funding they need when they need it.
Call 704-904-0774 Today to Discover the Benefits of Payroll Funding Companies!
How Can You Apply for Payroll Funding?
The payroll financing application process with Your FundingTree is fast, easy, and free. Plus, it can be completed online without having to spend time meeting with lenders, filling out endless paperwork, multiple applications, and other time-consuming tasks often associated with applying for a business loan. Instead, the business loan application process starts out by completing one simple 90-second application which is available on our website. After the initial application has been submitted to us via our website, it will be reviewed by an in-house Payroll Funding Specialist.
From there, the applicant’s information is made available to our wide network of lenders who specialize in payroll financing. After reviewing the applicant’s initial information, lenders will contact you directly so they can discuss the potential payroll funding options that they would like to offer you. Most of the time, borrowers are contacted by multiple lenders, often up to five per application. Because our lenders belong to a network that includes many different types of competing finance companies, they know that they will face fierce competition to win your business.
Looking for Payroll Funding Companies
Lenders are given incentive to offer borrowers who apply for payroll funding via our website the best possible loan terms so that they’ll have a better chance of winning their business. This means that you can feel secure knowing that you will be receiving a very competitive loan offer. When borrowers are given multiple loan options, they can choose a lender who is fair and reputable without feeling pressure to go along with unfavorable terms or rates. You will be able to easily compare your loan options, side by side, and choose the lender who can best accommodate your business’s payroll funding needs.
What Are You Waiting For? Apply for Payroll Financing Today!
When you apply for a payroll funding loan online via Your FundingTree, the application takes less than two minutes, and the approval process is quick and worry-free. Within a few hours after submitting your payroll funding application, you’ll know your financing options. In fact, it’s possible to complete the entire application process, from start to finish, in less than a week’s time, which means if you apply today, you could be receiving payroll funding by next week.
It’s a win-win for everyone involved. How easy is the application and approval process? It’s so simple that you only need to remember 4 steps.
Here are the 4 steps to obtaining a payroll loan in time so you can cover payroll:
Fill out the easy (free!) 90-second application on our website.
Wait for the loan proposals to start rolling in. You can expect to be contacted by up to 5 direct lenders who specialize in payroll funding.
Choose the best business loan for you. With so many lenders competing, you win!
Once you agree on your payroll loan terms and provide the lender with any required documents, you could see the cash in your account as early as the next business day!
Payroll Financing Rates
The interest rates and fees that you pay can vary widely depending on a number of factors. These include business assets, the credit history of your business, the credit ratings of your customers, how much funding you need, and how long it typically takes for your customers to pay their invoices. When applying for a payroll loan, it is best to make sure your company is in good shape prior to submitting a payroll loan application to a payroll funding company. Your company should be current with its payroll taxes and its invoice aging report should be in good shape as well.
Payroll loans are a unique agreement between the borrower and the lender so it might be that your terms and conditions are truly yours alone. However, once you become a client, you’ll have the ability to tap into the financial resources provided by your lender at any time, whenever you need it. Payroll funding is perfect for most industries such as staffing, trucking, medical, security, and manufacturing.
You can choose to sell any or all of your invoices to get the cash you need to cover your immediate business costs such as payroll, payroll taxes, and other ongoing business operating expenses. So, just as long as you have a steady stream of invoices, you’ll never have to worry about not making payroll, falling behind on payroll taxes, or having to once again stress over your company’s unexpected emergency expenses that seem to always crop up.
Call 704-904-0774 to Learn More About Your Payroll Funding Options Now!