What Is A Payroll Loan?
Sudden hurdles are an inevitability in business, whether you suddenly need to bring on another member of staff, a vital piece of equipment breaks, or you incur any sort of expense that needs funds you don’t necessarily have at the moment. Bank loans are notorious for taking a great deal of time to process, so they aren’t a match. Several other alternatives for unexpected expenses have arisen, one of which is payroll lenders.
Payroll lenders provide short-term loans designed for unexpected expenses that take place between the times you get paid. This leads to their other common name of payday loans. These loans generally are for a small amount of money, up to roughly $1,500, but you can have access to funds as quickly as the next business day. Requirements are relatively low. Some payroll lenders need some recent pay stubs or bank statements. These prove that there is a steady income coming in. The due date for the full amount, plus any fees, is the next time the borrower gets paid.
While these may prove to be a useful tool, payroll loans carry their own set of issues. Therefore, it’s important that you know the positives and negatives about them before you decide to use them.
Weighing Pros and Cons
The largest concern about payroll lenders and loans, by far, is the fees and rates that apply to them. They generally carry a very large APR rate, often between 15% and 30%. In addition, if you are not able to make the payment when the loan is due, you will incur other hefty fees, as well as even possibly a higher interest rate. Going into a payroll loan without knowing the details can leave you in worse financial condition than when you started. To avoid this, be sure to do your research not only on potential lenders but on your own financial status as well. Make sure you know exactly how much you will be paying, and be sure that your paycheck will be enough.
The versatility and speed of payroll loans make them appealing to business owners in a jam. At the same time, due to some of the high rates and fees associated with them, they can make a poor choice in times of desperation. This doesn’t mean that they are bad, but you want to be sure your money is in order before you try to go through with one. In additions, there are some alternative funding options out there with similar benefits to payroll loans, but with less risk
What To Do Without Payroll Lenders
eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances, which are available to many business types. 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, all you need to do to start is fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.