Applying for a payroll loan can be quick and easy. Most online lenders offer payroll loans, but traditional banks may require you to visit a branch. Alternative lenders, such as QuickBridge, may require an online application, which takes less than an hour. You will need to provide basic information about your business, including your contact information and Social Security number. You may also be asked to connect a bank account. If you meet all the requirements, the loan funds can be deposited into your bank account on the next business day.
Payroll loans are available to cover a single or multiple payroll pay periods. They typically carry a lower interest rate than term loans, and can range anywhere from $5,000 to $250,000, depending on your business’ needs. Small business owners can also benefit from a business line of credit, which can provide enough money to cover a number of payroll periods.
Payroll loans are great for business owners who want to meet an immediate need but do not have the cash flow to pay the bills. They can also fill in a revenue gap before a busy season. These loans can be the only option if traditional loans are unavailable. Typically, these loans come with an interest rate of 15 to 30 percent.
Payroll loans for small businesses are a good option in a pinch, but should only be used as a last resort. Having an airtight budget is crucial, but there are still unexpected expenses that can come up, and payroll loans can help you meet your payroll obligations. If you plan ahead, you’ll be better off with a payroll loan than you’d think.
Paychex has partnered with Biz2Credit, a leader in the small business finance industry. They work with companies to match them with the right financing product based on their company profile. The application process can take as little as four minutes, and the entire process is quick and transparent.
Fundera is another alternative for small business owners. This online marketplace works with lenders to provide small businesses with payroll loans. However, the process may take longer than applying directly with lenders. Additionally, Fundera is part of the Nerdwallet lending marketplace. Funding Circle is another alternative, but it works better for larger companies.
Payroll loans for small businesses can make your business survive during tough times. For example, during the off-season, large orders may need to be paid, or you may need to hire temporary employees. Payroll loans can also help you prepare for the busy season ahead. They are a great option for businesses that don’t have the resources to hire employees on their own.
In addition to payroll loans, you can also apply for merchant cash advances. This type of loan provides fast funding for payroll. While this type of loan requires you to make a certain amount of sales daily, it can often be approved in as little as 24 hours.