Can’t Make Payroll? How to Find Fast Capital and Pay Your Employ - KUAM.com-KUAM News: On Air. Online. On Demand.

Can’t Make Payroll? How to Find Fast Capital and Pay Your Employees

Posted:

Almost 30 percent of startups fail because they ran out of cash. This means they don’t have enough money to buy new equipment or pay their employees.

However, startups and small companies are not the only ones that need fast capital to make payroll and support their daily operations.

Any company, big or small, can encounter financial problems.

Perhaps you have a client who didn’t pay on time. Maybe you’ve made an investment that proved disastrous. The question is: what can you do now to make ends meet and pay your staff?

From applying to small business loans to sharing equity with your people, there are several strategies you can use to compensate your employees when the money runs out. Consider the following solutions to payroll problems:

fast capital.jpeg

Almost 30 percent of startups fail because they ran out of cash. This means they don’t have enough money to buy new equipment or pay their employees.

However, startups and small companies are not the only ones that need fast capital to make payroll and support their daily operations.

Any company, big or small, can encounter financial problems.

Perhaps you have a client who didn’t pay on time. Maybe you’ve made an investment that proved disastrous. The question is: what can you do now to make ends meet and pay your staff?

From applying to small business loans to sharing equity with your people, there are several strategies you can use to compensate your employees when the money runs out. Consider the following solutions to payroll problems:

Apply for Payroll Loans

Whether you’re a startup or an established business, you can apply for payroll loans to get fast capital and compensate your staff for their hard work. Most creditors are willing to offer up to $5 million to businesses that need payroll funding.

Also known as a working capital loan, this financial product requires no collateral. While it’s true that it has higher interest rates compared to traditional loans, it could save your business when times get though.

One of the primary advantages of payroll loans is that they’re fairly easy to obtain and have less stringent eligibility criteria than other types of loans. How much money you’ll get depends on your business size and industry, cash flow, and credit history, among other factors.

Need Fast Capital? Get a Microloan

If you own a small company with few employees, consider applying for microloans. As its name suggests, this type of loan provides access to a small sum of money.

Microloans require no collateral and have low interest rates. They appeal to entrepreneurs, startups, small businesses, and self-employed individuals.

One way to get a microloan is to apply through the U.S. Small Business Administration (SBA).

The SBA’s microloan program offers up to $50.000, with a six-year repayment term. Borrowers can use the money to pay their employees, purchase furniture and equipment, or expand their operations.

Consider Crowdfunding

A growing number of startups are turning to crowdfunding to raise the money needed to grow their business and bring their vision to life. Even though no one can guarantee that you’ll get funding quickly enough to make payroll, it’s worth trying.

All you have to do is to sign on a crowdfunding platform like Kickstarter, Crowdfunder, or Fundly, describe your business, and specify what you need the money for. Sure, it’s not that simple, but we’ll try to keep it short.

The key is to be creative with your business page and emphasize how your products or services benefit the community. In general, companies with original ideas have the highest chances of success.

Focus on creating an appealing business profile. Tell people who you are, what you do, and how you can improve their lives. Share the story behind your brand and the struggles you went through to get where you are today.

Your Employees Are Your Most Valuable Asset

As a business owner, it’s your responsibility to make sure your employees are satisfied and engaged. If you don’t pay them on time, they’ll move on and search for work somewhere else.

Nowadays, getting fast capital is easier than ever before. There are microloans, small business loans, payroll loans, crowdfunding, and more. You just need to find the right option for your business.

Not sure where to start? Check out these popular types of business loans for startups!

Powered by Frankly