How Commercial Fishing Businesses Can Benefit From Payroll Financing

Industrial fishing is a multi-billion dollar business in the U.S. alone. Commercial fishing companies of all sizes continue to brave choppy waters (both literally and figuratively) to provide the world with seafood. And, despite the decline of fish populations in many regions, many fishing businesses continue to thrive. However, just as many commercial fishing companies struggle with poor cash flow.

Despite the availability of cash through various avenues, many companies struggle to find the best solution to their cash flow woes. In many cases, this leads businesses toward payroll factoring, which is a costly and risky endeavor. Alternatively, payroll financing offers better terms and greater security when cash flow issues arise.

Why Cash Flow Issues Plague Commercial Fishing Companies

Small-scale fisheries are often family-owned and operated. This means that personal and business funds may get intermingled, making it harder for business owners to get credit extensions or business loans. Even medium and large commercial fishing companies struggle to maintain steady cash flows because of the high overhead costs of maintaining boats, equipment, labor, and permits.

Moreover, smaller fisheries may struggle to build consistent relationships with buyers. For example, a smaller fishing company may depend on just a handful of local restaurants or grocery stores to buy its catch of the day. If even one or two of these buyers go out of business or choose another supplier, it could greatly decrease the fishing company’s income and make it difficult to cover basic monthly expenses.

Finally, seafood is not like many other kinds of “products” sold on the market. There is a limited amount of time between the moment that the seafood is caught and the time it must be sold. It is not as easy to simply store seafood in a warehouse until you can find a buyer. While freezing fish and other seafood offers businesses extra time, it is not ideal, as many restaurants, grocery stores, and other businesses want to offer their customers “fresh” seafood. Therefore, the fishing industry at large has to balance a high demand for seafood with a strict timeline to sell what has been caught. Otherwise, a fishery may have to throw out unsold products, wasting food and losing income in the process.

The Benefits Of Payroll Financing

If your commercial fishing business is experiencing cash flow issues, it will only exacerbate the problems outlined above. Not only will you struggle to sell products, but you may have difficulty paying your hard-working staff on time. If this happens frequently, you could end up with a high turnover rate, which can be extremely costly for your business.

Fortunately, payroll funding can ensure that your business keeps employees paid on time while you wait for delayed payments. Rather than allowing low cash flow to affect your business and your business, you can choose a payroll financing plan with low rates and easy repayment terms. This, in turn, ensures that you can continue operating normally, even when you are experiencing a slow period.

Cash flow issues may affect many commercial fishing companies, but it doesn’t have to be the case for your business. If your organization requires a small business loan for payroll to operate efficiently, call Payro Finance today to see how we can help.

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