It’s a common problem facing small businesses–how to finance growth while maintaining adequate cash reserves.

In Cash is King: Why Small Businesses Should Care About Cash-Flow Management, Forbes contributor Eliot Buchanan cites a JPMorgan Chase study which indicates that most small businesses have less than a 30-day buffer of cash on hand to cover their outflows. Buchanan adds that even the top performing small businesses, those in the top 25%, only have a two months’ reserve.

Why is this a problem?

As Entrepreneur contributor Brian Hughes explains in What Does It Really Take to Get a Small-Business Loan?, small businesses need money to grow, but without growth, they can’t increase the revenues that will bring them that money. In the meantime, what happens when these businesses need to expand their payroll to cover additional employees, add inventory, or purchase new equipment?

Many businesses faced with these types of capital needs turn to small business loans. Other businesses rely on cash infusions from family or friends. Some small business owners use their personal credit cards as a source of short-term capital. None of these solutions is ideal.

Hughes notes that businesses relying on small business loans may have to wait weeks or months for the funds to become available. While faster solutions, such as online lenders and credit cards, charge high interest rates that can put the cost of growth out of reach.  Reliance on family and friends is unpredictable at best. And as Jared Hecht notes in his Forbes article,  7 Reasons You Won’t Qualify for That Business Loan, there’s no guarantee that your small business will qualify for a loan when you need it.

Is there a better solution?

If you are an eESI customer, the answer is yes.  If you are not currently an eESI customer, it may be time to consider all the benefits of outsourcing your HR, and our new unique funding benefit.

In today’s eESI podcast, we’re talking with Steve Ott about a unique, new small business working capital program available to eESI customers.  This new program enables small businesses to bridge the gap between their accounts receivable and current capital needs, as well as a host of other capital investment needs.

As you’ll hear Steve explain in the podcast, access to our working capital program is much better than a traditional small business loan because it requires no collateral, no lengthy application process, and starts at a simple 4% interest rate.  How can they do that?  

As an eESI client, your business is pre-qualified so all it takes is a quick phone call to get a decision; funds can be available within 24-48 hours. 

Steve shares more details about the program in the podcast, so be sure to give it a listen. Or, get in touch with your eESI payroll administrator and tell them you want to learn more about our payroll funding program. Our employers’ working capital benefit is just one more way eESI is helping you simplify business.

Call 1-210-495-1171 to learn more.