How Does Payroll Funding Work?
Payroll financing by PAYRO Finance 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that businesses can draw against to cover payroll, and like a line of credit, you only pay interest on what you’ve withdrawn.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 Line of Credit or Invoice factoring.
When processing payroll, businesses can draw funds up to the net cash requirement for that particular payroll run.
Who is Payroll Funding For?
Established businesses that come across unexpected cash flow crunch due to unforeseen circumstances. i.e. seasonality or customer payments being delayed.
Businesses in the healthcare industry that are heavily reliant on insurance reimbursements which can take longer than expected to arrive.
If you are wondering whether or not Payroll Funding will work for your situation, some questions to ask yourself include:
- Are you struggling to make payroll on time?
- Does your business have extended payment terms?
- Is your business experiencing rapid growth?