Bay Area Experts Offer Payroll Financing Assistance
There are many misconceptions about payroll financing, how it works, and what companies it is available to. While payroll financing isn’t the ideal choice for every company, it is a viable option in many instances, and it can help a business move forward during difficult or irregular points during its lifecycle.
As one of the leading providers of payroll services across the nation, our team of Bay Area experts provides a wealth of knowledge to our clients. We have helped businesses of all sizes reach their goals, and have worked with companies representing many different industries over the years. If you have a payroll need, we would love to help.
In this article, we will discuss payroll financing and provide some insight into how it works. We will also provide insight on what payroll financing is, what it isn’t, and what companies offer reputable payroll financing services.
Defining Payroll Financing
Many people confuse payroll financing with payroll factoring, and while there are merits to using both in certain situations, it’s important to understand their differences. Payroll factoring involves selling invoices due to your company to another entity, who will pay you a discounted rate on them. This gives you immediate cash, but also hurts your bottom line. Payroll financing is actually a short term loan which is taken out to pay your employees, and it is paid back with fees and/or interest.
When Payroll Financing Makes Sense
No company wants to miss payroll, but being in danger of missing a pay period doesn’t necessarily mean a business is in dire straits. In many instances, a company might be waiting on payment for a large project, but the funds might not be available on time. Or, a company might have had to purchase many materials to take on a new project, and this might cause them to be short on payroll. In either case, as long as your company expects to be paid enough to cover the loan, it’s better to choose payroll financing over missing a pay period and potentially causing irreparable damage to your company’s morale.
The Payroll Financing Process
Our team partners with a leading provider of payroll financing services called Payro. Because our software integrates with their service, the process of applying for and receiving a payroll loan couldn’t be easier. You can apply online, and if approved you can receive funds to cover payroll on the same business day. There are no financials required to apply, all you will need is the last 6 months of your bank statements. Once the funds are received, you then have 28 days to repay the loan plus fees, and there is no prepayment penalty.
Local Experts Can Provide Assistance
It’s our aim to make the payroll financing process easy for your team. If you have additional questions about payroll financing or you are in need of professional payroll services, we would be happy to help. To learn more, please feel free to contact us today.
