Be Informed on your Payroll Financing Options
Payroll Financing Questions Answered by Local Pros
No business ever wants to miss a pay period, and if you are in danger of not being able to pay your people then there is a solution available through payroll financing. We understand it’s not an enviable position to be in if you need a payroll loan, but by partnering with the right provider you can use the loan to ensure your business doesn’t miss a beat and your people are paid on time.
Our team is made up of local experts who have a great deal of experience processing payroll for companies of all sizes and industries. We have helped companies through all phases of their life cycles, and we can help guide you through the payroll financing process as a partner if you have a need.
In the sections to follow, we will discuss payroll financing in depth and hopefully provide some insight into how it can help your business.
Payroll Financing Benefits
The purpose of payroll financing is to allow your business to continue operating even if you have invoices which will come due after a payroll period passes. Rather than missing payroll while you wait for these invoices to be paid, a payroll loan allows you to pay your people and/or continue funding your business until the money you are owed from your clients comes in.
Payroll Financing Process
Depending on the payroll financier you work with, the process can be easy. We partner with Payro, a company who leads the industry, and their process is simple and straightforward. To apply for the loan, you will need to complete an application and provide six months of bank statements. Approval usually takes 1-2 business days, and funds can be wired on the day of approval to help avoid the risk of missing payroll.
Our clients often have many questions about financing. We can help answer detailed questions, but the answers to a few common ones are listed below.
Is financing the same as factoring?
Many people confuse payroll financing with invoice factoring. Payroll financing is a loan taken out to cover payroll expenses. Invoice factoring involves “selling” your invoices to another company who will collect them for a fee or percentage in exchange for immediate funds. These are both viable options for covering payroll, but the right one for your needs will depend on your circumstances and preferences.
How long do I have to repay the loan?
When you receive a loan through Payro, the payback period is 28 days and there is no early payment penalty. Most payroll financiers will have a similar payback period.
Can payroll financing work with my payroll provider?
Payro’s loans integrate directly with our payroll services, meaning we can immediately disburse the funds to your employees and ensure their pay period is not missed.
We understand the payroll financing process can seem complex, but we’re here to help every step of the way. To learn more about payroll financing and/or the services we provide, please browse our website or give us a call today.