How Insurance Agencies are Using Payroll Financing to Expand Their Business

BOONTON, N.J., May 5, 2014 /PRNewswire-iReach/ -- To succeed in business, it takes hard work, determination, some patience and a bit of old-fashioned good luck. When one wants to expand their business or has an immediate expense, it typically requires cash. Many insurance agencies realize this and have turned to payroll financing to help expand their business.

How Can Payroll Financing Help Insurance Agencies to Expand

Like many companies, the business of selling insurance comes with its own set of rules and timetables. In an insurance agency world, they deal with future commissions and bonuses but many business activities require immediate cash.

When a sale of a policy is made, the insurance agency is paid a commission but many times that commission is paid over time or at certain dates throughout the year. That might be ok if one owns a sole proprietorship agency but if you have employee's, they are not always willing to wait to be paid.

When it comes time for the owner to pay employees, there might not be enough cash to go around. This could be the result of a slow sales period or because you are waiting 30, 60 or 90+ days for the insurance company to pay the agency.

Hiring new staff and the gap between when they produce

There is also the gap that occurs between when a salesperson is hired and how long it takes that person to begin to produce revenue.

If business is going particularly well, it could become necessary to hire more salespeople or administrative staff. This will require training, new equipment, furniture and maybe even new office space. It will certainly demand an increase in your payroll.

Payroll Financing is an alternative solutions to a bank loan

A cash advance company, like Payroll Financing Solutions (, can help to bridge the gaps that are unique to the insurance industry. They will count your future commissions as collateral and provide your agency with cash based on their value. You can use this cash to make payroll, pay bonuses or handle the extra expenses related to expansion.

The application process is fast and you can have the immediate business funding you need in as little as 48 hours. Best of all, you can repay the money in just a few short weeks or months, when your cash flow is stronger. This solution can act as a lifeline for insurance agencies and many agencies are using this just like a business line of credit.

Just imagine how much you could accomplish if you didn't have to worry about running out of cash. A cash advance can give you the freedom you need so you can get back to growing your business.

Why Insurance Companies Have a Difficult Time Getting Bank Loans

Banks are great for savings accounts and mortgages, but not so great for small businesses in need of an instant business loan. For insurance companies, getting a short term business loan from a bank can be particularly difficult.

At a traditional bank, they will expect you to provide tons of documents to get a loan and even if you do qualify, it can take up to 10 weeks to receive your money. You will also need to have enough collateral to back the loan and they do not typically count future commissions as assets.

An alternative lender, Payroll Financing Solutions is more understanding of the commission structure used by insurance agencies. They will work with you to get the same day business financing you need.

The Importance of Insurance Agencies

If you have ever been in a car accident or need to see a physician, you know the importance of insurance. Without it, most of us could not afford to pay for the damages that result from a disaster or even a brief hospital stay.

Insurance is one of those things we have come to rely on but don't often think about until we need it. There are plenty of jokes about insurance salespeople and indeed, some of the funniest commercials currently on television are those advertising insurance companies.

We look for our insurance company to help us out of any predicament but no one ever considers what the insurance agencies might need to stay in business or to improve. Well, like any other business, they need access to cash. Payroll financing gives them the emergency business funding they need so they can keep helping when others are in need.

Media Contact: Stephen Halasnik, Payroll Financing Solutions, 862-207-4344,

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SOURCE Payroll Financing Solutions





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