10 Dec What Is Payroll Funding?
Small businesses can often struggle with meeting payroll demands. Now more than ever, during these unprecedented times, with businesses struggling to stay afloat, the necessity for payroll financing has never been greater. Hold onto your stellar staff and avoid the worry of having to let employees go. As a payroll funding company, it is our goal to keep your business running by getting your employees paid.
Whether you run payroll on a weekly, bi-weekly, or monthly basis, Payro Finance can help you finance those payrolls. With the ability to provide funds instantly, we can ensure that your business stays afloat even when funds are temporarily running low.
Why Businesses Need Payroll Financing
Needing payroll financing does not speak to poor business management or the inability to do things on your own. In fact, nearly 43% of all small businesses struggle with business cash flow. Oftentimes, invoices have a 30-60 day pay date. That lag creates periods of time when funds are tight and funding payroll can turn into an impending nightmare of doom. No one wants to be delaying payroll or telling their employees they’re not getting a paycheck this month.
That’s where Payro comes in. We offer payroll financing solutions, because we don’t want to see small businesses failing simply due to the fact that all businesses can sometimes be low on cash reserves. We don’t want you to have to deal with bank loans and other lending products. It can typically take weeks to get approved for a traditional loan, and company assets to borrow against, a good credit score, and operating history are all needed.
Payro Finance’s payroll funding makes things a lot simpler for you. If you have bad credit, that’s okay. Our job is to work with you, so that you, the business owner, can be running payroll on time and focusing on growing your business.
Payroll Funding Versus Payroll Factoring
When small businesses are short on cash and require funds for payroll, there are two primary ways to secure funds – payroll funding or payroll factoring. Payroll factoring, also known as invoice factoring, requires you to use outstanding invoices as collateral in order to obtain funding. For example, when factoring for staffing companies, you are essentially selling your accounts payable in order to receive cash. On every invoice you issue to a customer, you are paying a percentage to the payroll factoring company, along with interest depending on how long it takes your customer to pay the invoice.
Payroll factoring companies also get a say in the kinds of customers you take on and may implement changes in invoice terms and conditions. They are essentially taking a controlling factor in the way that you run your business. Why give up that control? It’s your business, you should be the one in control after the blood, sweat, tears, and money already invested.
Enter Payro Finance. We offer payroll funding for staffing and all other types of companies without taking charge of your accounts payable. We don’t change the way you conduct business with your customers or make demands on how your business should run. We offer a temporary infusion of funds for businesses who sometimes find themselves in a cash crunch.
Payroll Funding Versus Merchant Cash Advance
Another option for small businesses with cash flow difficulties is a merchant cash advance, or MCA for short. What a merchant cash advance provider will do is give you a designated amount of business funding money in exchange for a slice of your future sales. What this does is that instead of making fixed monthly payments to pay back the loan, you make weekly or even daily payments, plus fees, until the loan amount is paid in full.
When taking a business cash advance, it can negatively affect your credit score and just set you up for more debt. Known as quick cash, MCAs are known to carry percentage rates in the triple digits. When you factor in the high interest rate along with the daily repayment schedule, the business loan can trap you in debt, where you are literally unable to pay back the original loan due to all the accumulated interest and fees.
Generally speaking, merchant cash advances should be a last resort for business. They tend to create more cash flow difficulties than they solve. Make the wise financing choice and choose payroll funding instead. Our goal is to help you, the business owner, and thereby small business entities everywhere continue to grow and not fail during these difficult times.
The Payro Finance Solution
With Payro Finance, you can get a quick line of credit to help you run payroll on time during those times when funds are tight and open invoices are still waiting to be paid. Unlike traditional loans or other lending options, collateral is not required. We do not use your outstanding invoices as collateral or force you to change the way you conduct business with your customers. We also do not demand a slice of future sales or hit you with extremely high interest rates.
At Payro, we like to keep things simple. If you have solid business revenue and occasional cash flow issues, we will approve your payroll funding. There are no hoops to jump through or weeks-long application processes which make you feel like you’re climbing Mount Everest while holding your breath.
Upon submitting payroll, businesses can simply opt-in to receive payroll financing. You can get financing for your full payroll amount with a maximum of $500,000. Once opting-in, you, the business owner, will receive funds on the same day to ensure payroll can run on time.
Lack of payroll funding can unfortunately negatively impact a business in so many ways. Besides the obvious of needing money to simply pay your employees and keep them on staff, there is also the huge role that employee morale plays in any business. If employees are worried about getting their next paycheck, or worse, have already been told that payroll will be delayed, it tremendously impacts their productivity and morale. This in turn will affect their work and thereby play a detrimental role in the continued success of the business. Don’t let things reach that point.
So if you’re in a temporary cash crunch and are anxious about running payroll on time, let us help you. Stay away from loan sharks who only care about making their wallets grow bigger and bigger. Their pockets are full enough without taking advantage of business owners. Use a company that actually cares about promoting the longevity of small businesses and wants to see them succeed.
At Payro Finance, we pride ourselves in being a payroll funding company whose objective is to help businesses struggling with cash flow management. We are not looking to mess with your business, to change your business, or even worse, to run your business bankrupt. We are simply here to help companies who are temporarily short on funds and need to meet payroll deadlines. Our short term loans will help keep you afloat until your funds balance out again.
Let us help you survive these challenging times, and take a bit of the burden off your shoulders. Use Payro Finance to fund your payroll needs and take you and your business into 2021 successfully.