One of the biggest responsibilities for a business owner is making payroll. Financing your payroll is a method of allowing your company to finance invoices and assets in order to do just that. The success of your business depends on your ability to pay your employees and pay them on time. For any business, making payroll and ensuring you are always on top of it can be difficult. This is especially true for smaller companies looking to expand. Depending on your specific situation, making payroll may be a stressful and difficult endeavor. With payroll funding, you can reduce this stress and keep your employees happy.
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that businesses can draw against to cover payroll, and like a line of credit, you only pay interest on what you've withdrawn.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?
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?
Ultimately, payroll funding works best for those small to medium sized businesses who experience things like delayed payments or longer payment terms from customers, payroll crunch due to circumstances out of your control, or the need for rapid revenue growth, among other things.
For those companies who are experiencing any of these issues, and would like to lessen the stress of figuring out ways to make payroll on time for their employees, would benefit from exploring Payroll Funding as an option.
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