Where Can I Find Payroll Lenders 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, paying your employees 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 payroll lenders can come in. Just remember, a payroll loan is not an option for every payroll funding situation, but it is an option to consider.
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?
Who Are Payroll Lenders & How Do They Help My Business?
A payroll lender is someone who is willing to give a short-term loan that assists businesses with their next day payroll. This type of loan is given out in cash. Often times there are finance fees attached that are 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 Lenders?
If you are considering using a payroll lender but don’t know where to start, not a problem! Payroll lenders are typically found initially online or through word of mouth in the small business community.
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 are the right people 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.
Your Alternative Options
At eBusiness, we understand that unsteady cash flow is part of the start-up experience. You have just started your business and are growing your brand name. With our merchant cash advance product, we can get you approved in just 24 hours after you apply. We have made this simple and easy for you. You are also not going to have to sit and wonder if you have been approved for long.
After you are approved, funds will be deposited directly into your business bank account. This is generally a 3 day process from the time you apply until you have the cash in the bank. Unlike payroll lenders that require you to pay the cash back in full with a fee percentage, we take a different approach. When you get the cash, we will start to take a percentage from your business’ credit card sales each day. This process will occur until the advance has been paid back in full.
Seasonal businesses enjoy this concept because we take a fixed percentage, rather than a fixed amount. During the times when your business is not driving as many sales, the amount you pay back is much lower since it is a fixed percentage.
Why not give us a call today, so that you can focus less on making payroll and more on growing your business.