Payroll
Funding
Because your payroll expense is predictable, but cash flow isn’t
What Is Payroll Funding?
As a business owner, you know one of your biggest responsibilities is making payroll. In fact, the success of your business depends on your ability to pay your employees and pay them on time.
Payroll funding is a method of allowing your company to finance invoices and assets in order to do just that. Having this option can be especially important for smaller companies looking to expand or in situations where you need to bridge a financial gap, such as when you’re waiting for customer invoices to be paid.
How Does Payroll Funding Work?
Payroll funding, also known as payroll financing, is a short-term, unsecured loan specifically for payroll. It is a line of credit that businesses can draw against to cover payroll and, like a line of credit, you only pay interest on what you’ve withdrawn. At the same time, it is easier to qualify for than a typical line of credit or invoice factoring. When processing payroll, businesses can draw funds up to the net cash requirement for that particular payroll run.
Is It Right for Me?
If you are wondering whether or not payroll financing will work for your situation, some questions to ask yourself include:
- Are you losing sleep worrying about covering payroll on time?
- Does your business have extended payment terms?
- Is your business experiencing rapid growth?
Keep Your Business Moving Forward
The employEZ family of PEOs can help.
- Multiple solution partners
- Get the funds you need fast – avoid payroll funding emergencies
- Meet your payroll obligations on time – don’t let a financial delay cost you valuable employees
- Easy applications and terms
- Have a plan in place – compare payroll funding terms and rates before you get in a bind
What Else Can We Help You With?
Access a full suite of human resources solutions and services. Please fill out the form below to learn how we can help with payroll administration, claims management, employee benefits packages, and more.