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.

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.

Fast Payroll Funding – You Should Know this Trick

Finding a lender to help you with payroll funding can be a challenge. The first question a lender will ask is, “why can’t your business’ cash flow pay for your payroll?”. It is not always that your business’ cash flow can’t pay for it. Often times businesses who are paid through contracts can have a challenging time with bills month to month, depending on when their clients pay their invoices. We see this a lot with our construction clients.

Not all financial institutions understand this. When they are reviewing a loan application they are looking at the potential risks with the business and how it fits into their portfolio.

You Can Be Turned Down By A Bank For A Number Of Different Reasons Including:

• A short business history
  • Traditional business lenders look for at least a two-year business history and tax returns.
• Amount of personal or business debt
  • If you have business partners, their debt will also be considered, not just the loan applicant’s.
  • This is applied to credit as well.
• Poor credit
  • Personal or Business credit history is taken into account.
• No collateral
  • Do you have personal assets to hold against the loan?
• Lack of a business plan including:
  • Past financial documents
  • Three to five-year plan
  • Plan of how the funding will be used to enhance the business

One of the reason’s that businesses who are looking for payroll funding are often turned down is often the lack of a business plan. One of the details a bank is looking for is how the company plans to utilize the funding to grow their business. Payroll funding is a risk to the financial institution because it can show the business is in poor cash flow health.

What’s A Practical Solution?

Our Merchant Cash Advance is a form of business funding that focuses on helping you with things just like payroll funding. We want to help you with the daily operations of running your business while you wait for your clients to pay their invoices. Though similar to a loan, our product is different. Understanding that a Merchant Cash Advance is not a loan is important. We do not adhere to the same regulatory standards that the banks do. But just like a loan we have the same expectations that the funds are paid back.

The opportunity that a Merchant Cash Advance offers you is the ability to have cash quickly. We are able to get you cash in your hands just three days after you apply and are approved. We will advance you the funds so that you can meet payroll or any other operational expense. In exchange for the payroll funding, we will automatically take a percentage of your daily sales. This amount is a fixed percentage so unlike a traditional loan if you have a slow day or even month, you will not have to pay off a set amount each month. We will continue to take the same daily percentage until the advance and fees have been paid off.

When it comes to advancing payroll, there are some risks on behalf of the provider. Business owners should also be aware of the risks. As a business owner, it is always important to understand the contract you are signing when you accept any type of funding. You have to consider all of the pros and cons before making a decision.

Get Started Now

If you are ready to get the cash you need for payroll funding, give us a call today. As long as you have been in business for six months and do $10,000 a month in sales, we will get you the cash you need fast so you can meet your payroll needs.

Call eBusiness Funding at 305-985-6604 or Complete the contact form on this page.

Payroll Loans That Keep Business Moving

Obtaining payroll loans for your business on a regular basis can be a challenge. Even if you have been in business for years it can be a struggle. Most financial institutions are not looking to lend money to those who are looking to cover payroll. To a bank, it can be seen as a cry for help when a business asks for a loan to make payroll. This is a risk to their loan portfolio.

Having to ask for payroll loans does not mean that your business is going to go under. We understand this. Sometimes you are waiting for your clients to pay their invoices. These invoices may have a Net 30, 60 or 90-day window depending on your industry. This is why we make it easy to get cash in your hands to help cover your payroll until you get paid.

Any business owner who has applied for financing and was turned down by a bank knows that it isn’t the best feeling in the world. We understand the feeling and know recovering from being turned down and determining where to go next for financing can be extremely difficult. For this reason, the alternative lending market has grown rapidly over the last few years.

As an alternative provider, our company is focused on helping you grow your business. We only ask simple questions and never require a business plan. The first two things we are going to want to know are simple. Have you been in business for more than six months? And do you have more than $10,000 a month in sales revenue?

Once you have filled out our simple form, we can get you approved in just 24 hours. Based on what you are approved for we can give you a cash advance in the amount of $5,000 to $500,000 dollars. The best part is we can get you the cash you need in just three days. Unlike traditional payroll loans, we can get you the cash you need to make this week’s payroll not next month’s.

As you go through the traditional loan application process you will quickly learn that getting turned down is very common. Especially if you do not have what the financial institution is looking for.

Common Things You Need To Get Approved For A Bank Loan

• Good Credit History
  • This is for both your personal and business credit history.
• Quality Length of Business Operation
  • Typically, a business must be operational for two years before they can receive a bank loan.
• Collateral
  • When applying for a bank loan, the bank will look to hold personal assets as insurance for you to pay off the loan.
• Business Plan
  • A bank will require a plan of how you expect your business to grow over the next three to five years.
  • They will also request a plan for how the funding will be used.
  • Included in the plan they will expect for you to include your financials from the past few years. This will help them understand the financial health of your business.

Instead of going through the trouble of collecting all that paperwork just to be turned down, consider our Merchant Cash Advance program.

How Does A Merchant Cash Advance Meet My Needs?

• No Collateral
• Short business history is not a problem!
• Poor credit is not a reason to turn you down
• No business plan required
• Quick Approval
• Cash in hand fast!
• Spend the money the way your business needs

Getting Started

We believe that a Merchant Cash Advance is a great alternative to traditional payroll loans. If you think our product is the right option for your payroll loan needs, contact us.

Call eBusiness Funding at 305-985-6604 or Complete the contact form on this page