Is Payroll financing the answer to the problems faced by the food and beverage industry?
The Food and Beverage industry is a very competitive sector where things keep changing very rapidly. There are new and varied food chains opening ever so often challenging the existing ones. Let’s take the example of pizza chains in this scenario. It’s true that pizza chains are a very successful business models but franchised pizza shops as well as individual pizza shops both face difficulties from time to time.
One such challenging feature of pizza business is that they go through cash flow issues every now and then. Although it is true that pizza is one of the most popular and favorite food amongst people of all ages, running a pizza business means being in competition with every other pizza business in your vicinity. A pizza chain no matter how successful would have to compete with dozens of other similar pizza business in the area.
Although a pizza business is running and in demand throughout the year it faces a fluctuation in the demand given the day of the week and seasonal changes too. The demand and order rate is higher during the weekends and during the festival season or vacations and certain occasions. While the food is popular round the year the business income does fluctuates during some parts of the year. Weekends are the time when they make half of their total income, but they still have to keep open during the whole week for consistency.
There is an increase in the sales around certain holidays like Holi, New Years, and Diwali etc. Sports events also play a role in the pizza sales as the demand goes higher during Cricket season. This is why there is a huge spike in the demand on certain days of the years which means there is a significant drop as well in the demand rest of the time. This doesn’t change the fact that these pizza chains need a huge number of staff working for them for during the peak seasons but at the same time the same staff is still on the payroll even during the low demand phase.
Goes without saying that this leads to a cash flow issue that affects the business’s ability to function efficiently. When it’s time to run payroll there may not be the cash flow needed to pay the staff their wages and also ensure that the pizza business can continue to serve the customers efficiently.
This is where the food and beverage industry and the pizza chains can benefit from a payroll financing or payroll funding option.
With 1 Click Capital’s 1 Click Payroll many pizza shops, and food chains as well as small eateries can benefit and see a growth in their businesses. Since many food chains face fluctuation in cash flow they can benefit from an influx in their cash funds to make sure that each of their employee gets their paychecks on time.
Let’s look at the benefits that Payroll Financing can have on the food and beverage financing solutions.
- Convenience: When it comes to a business loan traditional business loans can require a ton of paperwork from you, a very stable and solid business revenue and a high CIBIL score history. But 1 Click Payroll solutions is much more convenient and user friendly than traditional banks. So the chances of you qualifying of a Payroll loan with 1 Click Capital is much higher.
- Low Cost: When you choose a payroll loan you only pay for the money you use. You can borrow only what you need to cover payroll expenses and also get it at a low cost interest rate compared to the market rate.
- Easy Application: Your application processing take less than 48 hours which gives you the ease of applying quickly when the need arises and the funds are disbursed in your account as soon as your application is cleared.
- Flexibility: Many traditional loan options make you pay a fixed rate and also lock you in paying the interest payments even if you pay off the loan quickly. With payroll financing you can pay back the loan according to your convenience and only pay for the amount you have actually used. This is useful in case of businesses that only need the funds and cash influx for a short period of time and can pay back the loan once the cash flow is healthy again.
1 Click Capital’s 1 Click Payroll solution can be the answer to your payroll problems, whether you run a pizza chain or an individual eaterie you can call 1 Click Capital to solve your cash flow problems any time