Commercial Loans: Payroll Loans Explained

Where Can I Find Payroll Loans For My Business?

When you hear the word payroll, most people will think about their paycheck that comes, hopefully, on a regular basis. But for some business owners, payday is a scary day. Whether you are waiting on contracts to be paid back or have had a slow sales month, payroll is expensive. The idea of not being able to make your payroll and send your employees home with a check can be sickening. That is where commercial loans such as payroll loans can come in. Just remember, a payroll loan is not an option for every payroll funding situation, but it is worthy of your consideration. Out of the overarching commercial loans category, they fill a very specific niche.

When you hear the word “payroll lenders”, you probably have three questions. Who are they? How does a payroll loan work? And, where can I find one?

What Is A Payroll Loan versus Commercial Loans?

A payroll lender is someone who is willing to give a short-term loan that assists businesses with their next day payroll. Called payroll loans, the borrower generally gets their loan in the form of cash. Oftentimes, there are finance fees tied directly to the amount that was loaned out. These fees can range between 15 to 30 percent of your payroll that was covered. On the agreed upon date, the lender will ask for the payment in full. This reality can be scary for business owners who may or may not be able to pay back the quick turnaround time.

Where Can I Find Payroll Loans?

If you are considering using a payroll lender but don’t know where to start, not a problem! Word of mouth in the business community is a good place to start, and there are also online resources to help you narrow your search.

With payroll lenders, it is important to remember that this is a short-term option. If you are just waiting for a client to pay you back, then it may be right for you. If you have had slow sales and can’t cover the cash and know you won’t be able to pay it back in the short-term, you may want to rethink this as an option. Not paying the lender back can be cause for additional fees or even higher interest rates.

If you don’t think these types of payroll lenders or commercial loans are the right sources to be borrowing from, that is okay. As a business owner, you have to do what is right for your business. That is why there are other alternatives out there to help you get the cash you need to cover your payroll, for example, merchant cash advances.

Merchant Cash Advances as A Payroll Loan Alternative

eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances that are accessible to a wider spread of businesses than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

It’s important to us that you use the funds we offer in the most helpful way possible, so we place no restrictions on how you spend our advances. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also very simple. Rather than large monthly payments, we take an established percentage of your future sales. This is set up by our skilled consultants. This percentage stays the same, so if business slows down, you pay less.

Interested? If you’re ready to begin, just fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.