Covering payroll: what can be presented to lenders?
Payroll to cover before clients pay is presented as a working-capital need, from your deposits. The lender sets the amount and its cost, in its written offer.
Choose my amountThe answers
- Can payroll be financed?
- Yes, it is presented as a working-capital need, sized on the business’s deposits. The lender decides and sets the amount in its written offer.
- My clients pay on terms and payroll does not wait: what fits?
- If you invoice other businesses, factoring finances those invoices before they are paid. Otherwise, revenue-based financing can be presented from your deposits.
- The need comes back every pay period: what can be presented?
- A line of credit answers a need that comes back, if the file supports it. It usually asks for more time in business and a stronger credit score, at the lender’s discretion.
- Do source deductions in arrears change the file?
- Yes: the lender sees them and weighs them in its written offer. The file can still be presented, as the page on tax arrears describes.
What the lender looks at
- Actual deposits, month by month
- The lender compares the payroll with what the business takes in.
- Trend over the period
- Revenue that climbs with the team supports the file.
- Days in overdraft
- An overdraft around payroll shows the gap is already there.
- Payments to other lenders
- An advance already running comes off what a new lender can offer.
$0 upfront · 7% only if funded
An intermediary, not a lender.
The lender sets the final amount and its cost in its written offer.
Choose my amount