PrimeRates provides access to personalized business loan offers through our simple and quick pre-qualification application. Once you’re pre-qualified, you can select the best offer for you and finalize the business loan application with the lender.
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Our simple application takes less than 5-7 minutes to complete.
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Choose the offer that best fits your needs by comparing loan amounts and terms.
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Finalize your loan offer with the lender you selected to receive your funds.
Can a payroll loan help your business? Experts seem to be in agreement that, yes, in most case payroll loans can be beneficial to businesses. Most lenders consider payroll a general working capital expenditure. This means your payroll loan can be used for a variety of business expenses. There are many options available for payroll loans increasing the importance for you to do your research and select the best option. Primerates.com is a time-saving resource that allows you to apply online and receive multiple competitive offers within minutes. Keep reading to easily compare some of the top choices for payroll loans.
A borrower can be issued a cash advance in the form of a payroll loan based on their status and income. If you have identification and proof of income payroll loans can be easy to secure.
If you are short on cash a payroll loan can help balance your cash flows. A payroll loan is commonly used for immediate financial needs. This can include…
The primary difference between payroll loans and payroll factoring is that payroll factoring is not a loan. Companies operating with little credit or poor credit should look into payroll factoring. Funding decisions consider the credit rating of a business’s customers rather than a credit score.
Originally founded in 2017, OnDeck is one of the largest online small business lenders that can provide quick funding.
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| Loan Amounts | $5,000 to $500,000 |
| APR Range | As low as 9.99% |
| Repayment Terms | Term loans up to 3 years |
| Time to Funding | As fast as 1 day |
| Click “Check Rates” to apply to OnDeck Check Rates | |
» MORE: OnDeck Business Loans Review
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FundBox is an invoice factoring company that services individuals and B2C entities. This fintech company can deliver fast funds up to $100,000.
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| Loan Amounts | $1,000 to $100,000 |
| APR Range | 10.1% to 79.8% |
| Repayment Terms | 3 to 6 months |
| Credit Score | No minimum personal credit score required |
| Time to Funding | A few minutes to several days |
| Click “Check Rates” to apply to FundBox Apply Now | |
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BlueVine can provide capital for small to medium-sized B2B and B2G businesses. This fintech company is known for invoice factoring and servicing funding requests faster than most of its competitors.
 Line Of Credit |
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| Loan Amounts | $5,000 to $250,000 |
| APR Range | 15% to 78% |
| Repayment Terms | 6 or 12 months |
| Time to Funding | As fast as 24 hours |
| Click “Check Rates” to apply to Blue Vine Apply Now | |
Invoice Factoring |
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| Loan Amounts | $20,000 to $5 million |
| APR Range | 15% to 68% |
| Repayment Terms | Up to 13 weeks |
| Time to Funding | N/A |
| Click “Check Rates” to apply to Blue Vine Apply Now | |
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A business line of credit can be used whenever you need as long as you stay under your approved limit. Although it can improve cash flow for your business the pros and cons should be considered.
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Invoice Factoring
Invoice factoring can provide immediate cash flow with no collateral required. However, invoice factoring is very different than a business loan. Outstanding invoices are sold to a factoring company that pays you in a lump sum.
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Other alternative invoice financing options include:
Invoice Discounting: Similar to factoring, but you maintain control of collecting payments. The lender advances a portion of the invoice amount upfront for a fee.
Asset-Based Lending: A flexible financing option where assets, including invoices, inventory, and equipment, serve as collateral for a loan.
Peer-to-Peer (P2P) Lending: Obtain financing directly from individuals through online platforms, offering a flexible and quicker alternative to traditional loans.
Online Lending Platforms: Online lenders like those PrimeRates connects businesses to, provide diverse financing options, including invoice financing, typically with faster approval and less stringent requirements than banks.
Supply Chain Financing: Enhances cash flow by allowing longer payment terms to suppliers, with options for early payment to suppliers.
Merchant Cash Advances: Suitable for businesses with high credit card sales, offering advances based on overall revenue, including invoices.
Revolving Lines of Credit: Provides a credit limit so business owners can draw funds as needed, paying interest only on the amount used. This helps balance your cash flow and helps you build business credit while allowing you to take advantage of business opportunities.
Crowdfunding: This can be an alternative for specific business models or projects, raising funds through crowdfunding platforms.
Each alternative invoice financing option presents different considerations like funding speed, costs, and control over customer interactions. Business owners should assess their needs and financial health to select the most appropriate invoice financing solution.
Short-term business loans are a practical option for businesses needing quick access to capital for immediate, short-duration expenses. Here are some of their benefits:
Shorter Repayment Period: Typically, short-term loans have a repayment period ranging from a few months up to a year, and sometimes extending to 18 months.
Faster Funding: They are usually quicker to obtain than long-term loans, often with a simpler application process and rapid disbursement of funds.
Higher Interest Rates: Due to the short repayment period, these loans often have higher interest rates compared to long-term loans.
Lower Borrowing Amounts: The amount lent is generally smaller, making them suitable for covering immediate expenses like inventory purchases, emergency repairs, or short-term cash flow gaps.
Flexibility: These loans can be used for many purposes, offering businesses flexibility to address various short-term financial needs.
Easier Qualification: The qualification criteria for short-term loans are less stringent than for long-term loans, making them accessible to businesses with less established credit histories.
Potential for Renewal: Some short-term loans can be renewed or rolled over.
Invoice discounting provides immediate working capital by leveraging unpaid invoices and is used to manage cash flow. In invoice discounting, a business uses its unpaid invoices as collateral to borrow money from a finance provider. The business receives a percentage of the invoice’s value, usually up to 85-90%, as an advance from the lender. The business retains control over its sales ledger and continues to collect payments from its customers. This means the business is responsible for pursuing and collecting outstanding invoice payments. Invoice discounting is usually confidential, meaning the customers are not aware that the invoices have been financed.
Specific requirements for getting a business payroll loan can vary depending on the lender and loan type, but typically include the following criteria:
Business Operating Time: Lenders require that your business has been operational for a certain period, usually a minimum of one year, to demonstrate stability and reliability.
Business Revenue: There will likely be a minimum annual revenue requirement to ensure that the business generates enough income to repay the loan.
Credit Score: While payroll loans can be more accessible than traditional loans, lenders may still check the credit scores of the business and sometimes the business owner. The required score can vary by lender.
Documentation: This can include business financial statements, bank statements, tax returns, and potentially your business plan. These documents help lenders assess the financial health of your business.
Employer Identification Number (EIN): Most lenders will require your EIN for tax purposes and to confirm the legitimacy of your business.
Proof of Payroll: Since the loan is for payroll, you’ll need to provide proof of your existing payroll expenses, such as recent payroll records.
Legal and Compliance Checks: Your business should be legally registered and compliant with local and federal laws.
Debt-to-Income Ratio: Similar to personal loans, lenders might assess your business’s debt-to-income ratio to evaluate its ability to handle additional debt.
Bank Account: A business bank account is typically required for the loan transaction.
Industry Type: Some lenders have restrictions on the types of businesses they finance, based on industry risk.
Requirements can vary widely between lenders, so it’s important to check with the lender for their specific criteria.
To avoid the need for payroll loans, businesses can implement these strategies:
By implementing these strategies, a business can strengthen its financial position and reduce the likelihood of needing a payroll loan.
At PrimeRates, we streamline the process of obtaining personalized business loan offers for payroll financing with our quick and easy pre-qualification application. After you achieve pre-qualification status, you’ll have the opportunity to choose the best offer for your needs and proceed to complete the business loan application directly with your lender.
Owning a small business can be an extremely rewarding opportunity that can allow you to share your passions and help others. However, it can have its share of ups and downs. Defaulting on payroll can result in lawsuits and other hassles so it’s important to take proactive measures to cover payroll.
Let’s compare some options in the event you can’t cover payroll…
Payment planning
If you have outstanding debts or cannot cover payroll you should consider payment planning. Financing options are available that can provide a plan for you to pay back outstanding debts.
Separate business savings account
Setting up a separate business savings account can come in handy for emergencies such as not being able to cover payroll. You should allocate an appropriate amount of funds each month to this savings account to better prepare for emergencies.
Open communication
It can be embarrassing to not be able to cover payroll, we get it. However, openly communicating with employees can result in many positives. It can provide the opportunity to collaborate as a team, reinforce core company values, and so much more. It can also help avoid brutally blindsiding employees when you tell them you are running out of money.
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