Using Bad Credit Business Loans to Make Payroll
A business’s employees are one if its essential resources. Just like working capital, inventory and solid management techniques, a business that has grown beyond a single person relies on employees to continue functioning and growing. With all the pressures of managing a business and many competing financial priorities, making payroll on time can sometimes become an issue, for instance when a past due invoice means that your business has funds coming in the door, just not when you need them.
Fast access to funding is a potential solution. Alternative capital, also known as merchant cash advance, is a financing option that small business owners can access rapidly even if they have bad credit or other derogatory financial history. This financing can be applied for and accessed in as little as a 48 hour period, making it a strong option for bridging gaps in cash flow. While the cost can be higher than a traditional loan, the expedited nature of the underwriting process and the potential to found an ongoing relationship with a company can provide some positive benefits for businesses that use their funds strategically.
Before taking an advance, be sure it makes sense for your business. While it can be tempting to apply for capital knowing that it can be made available quickly and is not restricted for use, business owners should be strategic when applying. Not only will this help them protect their cash flows from strain, but it will also help them preserve their relationship with their financing company of choice.
Photo Credit to デニス モジョ on Flickr