Business insights and growth highlights

What Payroll Financing Can Do For a Grocery Store Business 

Aug 25, 2022 by Morris Reichman
payroll financing for Grocery Store Business

Maintaining a business does mean having a steady flow of revenue. This is true for any type of grocery store as well as other businesses that cater to the public. Most of the time, the money coming in is enough to ensure everything is covered, including payroll.

Even with a great business model, there may be times when meeting payroll seems unlikely. Given that employees are one of the most valuable assets that the store possesses, the last thing you want to do is be late with their paychecks.

There is a solution that you can use when the flow of cash is diminishing or slow for some reason. You can get in touch with Payro and go over the options for payroll financing. What you learn will be the solution to your short-term problem.

The Importance of Cash Flow to Your Business

A healthy cash flow is important for a number of reasons. As it relates to the operation of your grocery store, the following is likely to hold true:

  • Settling Recurring Expenses: Part of your cash flow goes to paying suppliers, utilities, and in general, covering any expenses that make it possible to remain in business.
  • Investing Money in Improvements: Some of the cash flow is allocated to making the store better than before. This can involve everything from new shelving to better refrigeration equipment to enhancing store aesthetics.
  • Keeping Shareholders Happy: Investors love returns on their investments. As it relates to your store, anyone who has stock in the business will look for dividend payments from time to time. That’s not something you want to miss.
  • Growing a Contingency Fund: Your grocery store business needs financial resources that can be used if something out of the ordinary happens. The ability to take some of your cash flow and add to that fund each month is one of the best ways to recover from disasters like major plumbing failures, electrical issues, or storm damage.
  • Covering Payroll: As revenue is collected, money must be set aside to take care of payroll. That includes the gross amount of wages and salaries, plus any taxes that the store proper will owe. This is considered a priority expense that often comes before anything else for one simple reason; you want to keep the people who ensure the business continues to operate smoothly.
payroll funding company
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How Cash Flow Can Affect Your Grocery Store

In the best-case scenario, positive cash flow is sufficient to take care of everything. With your grocery store setting, this type of cash flow is generated every time someone shops for food. Based on the number of customers you have each day and the quantities they choose to buy, determine how much money there is to cover all the costs of doing business.

A major cash flow issue that impacts grocery stores is shifting in the buying habits of consumers. When times are good, customers tend to treat themselves to items they might pass by otherwise. Some of them may be higher ticket items that also come with a greater profit margin. In those circumstances, revenue will be higher, and paying the bills will be easier.

When the customer base is feeling the pinch of a difficult economy, they may focus more on buying the basics and doing without some of the specialty items they would otherwise purchase. This may result in decreased sales volume for the store, which in turn may lead to negative cash flow.

With negative cash flow, you may find it more difficult to keep up with some of the expenses. For example, it may be harder to cover the portion that must be paid upfront in order to receive goods from your suppliers. Even with some belt-tightening on your part, making sure everything is covered in the midst of the temporary downturn places a lot of stress on your financial reserves.

Through it all, you want to take care of the employees. That means continuing to make sure they get paid on time every week. That’s where calling on Payro to serve as your payroll financing company makes a difference.

business loan for payroll
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Understanding How Payro’s Payroll Financing Can Make a Difference

With Payro as your payroll funding company, you can set aside worries about covering payroll. All clients who meet Payro’s qualifications can expect prompt funding that has the money in a designated company bank account in very little time. That allows you to proceed with processing payroll and ensuring that everyone from checkers and baggers to store management will be paid on time.

Aside from ensuring all of your employees are paid, financing through Payro provides other benefits:

  • You can divert more of your money to other important expenses. If there’s a due date pending for one of your suppliers, you can now cover that and still pay all the employees. This means no late fees and no damage to your reputation with the supplier.
  • Employees will remain productive. Nothing undermines employee productivity like not getting paid on time. It also increases the odds of employees wondering how long they will have jobs, another event that you want to avoid. Employees who don’t think they are going to be around much longer see less reason to take care of their assigned tasks.
  • Prevent the revolving door. Employees who think that the delayed payroll means the store is going under are likely to look for other jobs. As any business owner knows, it takes more resources to train new employees than it does to keep established and hard-working employees. Funding via Payro means everyone is paid on time and sees no reason to look for work elsewhere.

Reasons Why Payro is the Right Payroll Financing Company For You

Payro is set up in a way that provides our clients with several key benefits. One of them has to do with the simplicity of seeking funding. We realize that grocery store owners need to focus most of their attention on operating the core business and not devote a lot of time and energy to going through a complicated application process. For this reason, we make applying quick and straightforward.

Another benefit is how quickly we will evaluate the application. At Payro, we understand that you need money now, not in several weeks. Expect us to have an answer back to you without any delays.

With Payro, there are no worries about that business loan for payroll coming with penalties if you pay off the balance sooner than the due date. That’s not true with funding options from other sources. With some institutions, you will need to pay all the interest that would be due if the financing remained in place for the entire term. We don’t do that; interest stops at whatever point you repay the funding in full. You also don’t have to be concerned about fines or additional charges for repaying the balance sooner than expected.

payro
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What It Will Be Like After Obtaining Financing From Payro

After receiving payroll financing from Payro, you’ll find that a lot of pressure is off your mind. This will make things better in a lot of ways. Here are a few examples to consider:

  • Everyone is paid, including yourself. As the owner, you draw a salary. Along with all of your employees getting paid, you also receive your pay on time. That goes a long way toward ensuring you can cover your personal expenses without having to rely on savings or other funds that you have tucked away in various bank accounts.
  • Thanks to payroll funding, more of your collected revenue can be used to pay off or at least make timely payments on other financial obligations. Your good credit and name remain intact with every other entity that currently does business with your grocery store.
  • Employees continue to show up for work. They received their pay on time, so no one hesitates to arrive on time and earn more money. That’s good since you need employees in place to keep the shelves stocked and ensure the customers are happy.
  • You sleep better at night. Knowing everything is covered means you can go home at the end of your work day, enjoy yourself, and get the sleep needed to show up the following day and take care of whatever happens.
payroll financing companу
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Contact Payro Today

There’s no reason why you should worry about how to cover an upcoming payroll. Contact Payro today and learn more about how to obtain the funding needed to ensure everyone is paid on time. Ask about the repayment terms and identify how they relate to your cash flow and the current state of the business.

Remember that you are not limited to funding once through Payro. After successfully fulfilling your commitment, there’s always the opportunity to come back and fund another payroll if the need arises. Our goal is to ensure that you know where to turn if circumstances make it difficult to ensure all employees are paid without fail. See us as a partner who is invested in your continuing success, and never hesitate to reach out. You’ll be glad that you did.

Morris Reichman

hello@payrofinance.com

Morris Reichman is the founder and CEO of Payro Finance. Former Vice President at Infinity Capital Funding an alternative finance company, Morris possesses a versatile background in the finance industry. Having spent 7+ years working across global macro operations and start up corporate finance Morris's expertise is in business accounting, risk management and investment analysis. Morris founded Payro Finance to support business owners and ensure their business continuity.