5 Reasons to Use Your Additional Working Capital for Small Business Payroll
Having a staff of talented employees is pivotal to the growth of your business, and with payroll loans, you can hire high quality employees. Since you recently received business financing, we’ll explain five reasons why you should use your additional working capital for small business payroll.
1. Pay employees during slow seasons
Some businesses experience major seasonality, where there are lulls in sales. If this is the case for your business, using payroll loans could help your business stay afloat. Not being able to pay your employees means that your business won’t be able to serve the customers that you do have, which is why you should make payroll a priority.
2. Bridge the gap
If you need payroll for small business projects, you may need to bridge the gap. This is specific to some industries, like construction businesses. If your business gets paid a portion at the beginning and end of a project, you may need cash for payroll. If you can’t pay employees throughout projects, they may look for other work!
3. Don’t risk losing employees
As we mentioned, if you are unable to pay employees, they may look for employment elsewhere. Using the additional working capital you received for small business payroll could ensure that you keep the talent that you already have. Investing in your employees will help you better your business’s overall future!
4. Recruit employees for new positions
There may be certain positions that you haven’t filled yet because you couldn’t afford it. Now that you have additional financing, you can advance your company’s future by hiring employees to fill these roles. Using payroll for small business recruitment means you’ll be able to expand your team, and hopefully provide your customers with better services or products.
5. Have payroll available during on-boarding
Once you hire new employees, you won’t see the benefit for a while. You’ll need to focus on on-boarding these employees before they can start contributing their talents to your business. Still, you need payroll available so that you can pay employees during this time.
Using your additional working capital for small business payroll can benefit your business in numerous ways. Besides the fact you’ll be more likely to retain your existing employees, you may also be able to recruit new ones. Plus, having a full staff will help you serve your customers at a higher level. If your business found success after using payroll loans, let us know in the comment section below.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.