Payroll Funding Companies Help Keep Employees Paid
Written by US Funding on December 17, 2015
With the holiday season rapidly approaching, if they haven’t already, people are now starting to think about how many gifts they need to buy. While this time of year can certainly be fun and exciting, for a lot of people it can also be rather stressful. In addition to finding the right presents for family, friends, co-workers, or anyone else, there are the meals and get-togethers to plan for. People with big families know just how difficult it can be to coordinate holiday activities.
This can also be a tough time of year for small businesses. While folks are generally ready to spend on gifts, they are also careful as to how they spend their hard-earned money. Businesses have to be savvy about their marketing and promotions in order to attract the most customers. Some small businesses actually have the opposite problem. For them, getting customers is not an issue; they have a product or service that people want. The trouble starts, ironically, when they have a large increase in sales.
How can a business be selling too much? It is an awkward concept to comprehend. After all, in order to be successful, a business should sell as much as possible right? Well, yes, in theory. For a normal retailer, this would be a great thing. People come in, get what they want, and pay for it. If this is constant, the business does very well. However, not all companies run like that. Many companies sell their items by taking orders. Another business wants what they are selling, they place a large order, and the merchandise gets shipped out.
On the surface, there is no difficulty; that just seems like a regular transaction. However, unlike the store example, the business buying the merchandise does not immediately pay for it. This a common practice in commerce. A company will ship out an order and then wait for payment. Now you can see the dilemma.
That small business could be killing it with sales; everybody wants what it has. But what happens when all its product is gone yet no one has made any payments yet? Production grinds to a halt. Vendors can’t be paid. New supplies and materials can’t be purchased. And worst of all, payroll can’t be met. All of a sudden this business is going to have mutiny on its hands because employees are not being paid.
Even if the employer-employee relationship has been great, no one will be willing to work for free. Plus, this could permanently hurt a company’s reputation. Who would work for a business that may not be able to pay its employees or its vendors?
There is a very good solution for this problem, and it involves the use of payroll funding companies like US Funding. We buy outstanding invoices and pay cash almost immediately. Our goal is to help small businesses get the money they need to pay their obligations during the period that they are waiting to be paid by their customers.
US Funding takes on the responsibility of collecting the payments from customers and pays the business cash for those invoices. This allows the company to meet its payroll and other financial obligations without waiting for customers to make payments. Contact US Funding to find out how we can help your business run more smoothly and eliminate your cash flow issues.