There are many challenges with running a business, but not every challenge is a bad thing. It is not uncommon for a business owner to have to concern himself with the real situation of his company growth outpacing his cash flow. This sort of situation starts out innocently enough, but it winds up being the kind of runaway success that business owners dream of and almost dread at the same time.
Each company has its contingency of clients who pay their invoices late and that always slows cash flow. But when the pace of those invoices starts to speed up, but the payments are still coming in 30 or 60 days late, then that is when the challenge begins. A company that is experiencing growth is also going to wind up with payroll issues associated with unexpected success and bad cash flow. The implications are extremely serious, but it is still a situation that most business owners would enjoy worrying about.
One of the first moves a growing company makes to capitalize on its success is to hire more sales professionals and sales support staff. Since the name of the company and the company's products are enjoying a spike in success, it is smart to bring in experienced professionals who know how to take advantage of a situation like that.
Sales staff can tend to be a larger payroll burden because much of their compensation is tied to the sales they generate in the form of commissions. You can try to have a policy that says that commissions only get paid after the client pays their invoice, but that kind of policy is not going to attract the kind of sales professionals you want working for your organization.
With the computer programs and the third-party services being offered for accounting, it is easier for a small accounting staff to take care of a decent size organization. But the increased demands caused by a spike in invoices and the additional personnel the company is taking on will necessitate hiring more accounting personnel.
One of the reasons for more accounting personnel is to make sure that all of the new accounts are properly handled. It can be easy for a growing company to make mistakes that it will regret later when it comes to processing new accounts. Success is what every company strives for, but success that is not properly executed can be fatal for a company. That is why payroll funding can be so important to a company’s success.
The appearance of new personnel to help a growing company handle its success means that new career opportunities will open up within the organization. A small company may suddenly find that it has a need for middle management positions to facilitate all of the new tasks that the staff will be asked to perform. If you want to keep your company organized, you need a strong chain of command that includes good management people.
Expanded opportunities means raises and bonuses to the key employees in your organization who have worked hard to earn them. Now your expanding payroll includes familiar names with new titles and new salaries. You need to fund all of these changes and it is not going to be easy with your cash flow concerns. Using a receivables funding program for payroll needs is the answer to your financial concerns.
All of these new and expanded payroll considerations can be exciting for a company that has worked hard to achieve this new level of success. But reality quickly sets in when you remember that your payroll issues are compounded by the weak cash flow created by past due invoices.
It is a vicious cycle that you need to break. You find yourself needing to expand payroll to accommodate all of the new business, but yet you cannot afford the expanded payroll because of customers who pay their invoices late. If you want your business to survive its own success, then you need to find a way to fund payroll without utilizing bank lending and the debt that it can add to your company's bottom line.
Once you find a solution to your cash flow problems, then you can enjoy the success that your company has earned. The answer to your challenge is receivables funding from Capital Credit. We are a company that funds payroll by taking your outstanding invoices and turning them into the cash you need to meet your expanded payroll obligations. We make the process simple and we make it easy, which will then free you up to find even more ways to bring in new revenue.
We look at all of your verifiable invoices with creditworthy clients as assets. They are as good as cash to us, which is why we are prepared to advance you the face value of those invoices, minus our lending fee. It is the solution you are looking for when you have to expand payroll while fighting a weak cash flow.
Capital Credit is a fast and flexible payroll funding option and we have years of experience working with companies in a wide variety of industries. Some of the industries we work with include trucking, staffing, product distribution, gas and oil exploration and construction. As long as you have a stream of outstanding invoices that are with creditworthy clients, then we can help.
One of the problems that growing companies experience is an inability to pay their vendor bills and fund payroll on time. With your expanding payroll obligations, your ability to meet your vendor needs becomes difficult. The Capital Credit accounts receivables funding process utilizes the credit score of your clients and not your company. We can help organizations that have bad credit or good credit, so long as there is a receivables aging report to work from.
We can also help start-ups that have no credit history at all. We are not a bank and we are not offering any loans here. This is receivables funding, which advances you funds based on the strength of your invoiced sales. We do not have any set-up fees and we also do not charge any facility fees. We disclose all of our fees to you when we approve your account and then we never add any hidden fees to increase your burden.
Capital Credit has the flexible receivables funding program that will help you to meet your expanding payroll. We will establish a business line of credit for you that will grow as your invoiced sales increase. It is the perfect solution for the company that has finally realized the success it has been working towards for years, but now finds that success outpacing its cash flow. Don't allow your sudden success to be a burden. Contact Capital Credit and we will use our accounts receivables funding program to meet all of your new and exciting payroll funding needs.