Business Payroll Loans

  • Financing from 10k to 750k
  • Get approved in 24-48 hours
  • Low interest rates starting at 7%
  • 6 months to 2 year loan terms
  • Flexible loan terms
  • No personal guarantee required
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Business loan for payroll expenses

Working capital to ensure your employees get paid.

Getting a Payroll Loan for Your Small Business

Sometimes, things just don't go as we planned. Maybe business has slowed, or a huge expense came up out of nowhere. Your budget has blown up and your financial projections are all off. Suddenly, it’s time to submit payroll and you realize you just don’t have the cash.

Don't worry - cash flow shortfalls happen. Payroll loans can provide a quick working capital solution so you can meet your obligation to your employees. Funds can be used to bridge cash flow gaps and ensure staff is paid on time and in full.

At Clarify, we offer competitive loans for every business type. We leverage our long-standing relationships with 75+ lenders to find you the best financing options and lowest rates possible.

Get approved for the funding you need today, Loan amounts go up to $750,000 and can be distributed in as little as 24-48 hours.

Top 6 Payroll Financing Types:

Different financing types have their own benefits. Prospective borrowers typically discuss their specific business objective with a lending advisor to determine which funding type is a good fit for their situation. Finding the right match for your financial needs depends on your circumstances and preferences - we’re here to help!

Short-Term Loan:

You probably already know what a term loan is if you’re familiar with personal loans, like auto loans and student loans. Term loans, also known as traditional loans, are one of the most popular financing types. They’re structured in a simple and straightforward way. You borrow a predetermined amount which is paid back on a regular schedule, until the loan is fully paid off.

Payroll Cash Advance:

If you have an immediate need, you might take out a cash advance for payroll. A Payroll Cash Advance, also called a Merchant Cash Advance (MCA) is one of the most popular loan products. With MCAs, business owners exchange a portion of their future revenue for instant access to working capital.

Line of Credit for Employers:

A business credit line is one of the most flexible financing solutions available in the marketplace. Business owners have access to a pool of funds that they can dip into whenever needed. There’s no penalty for not using the full amount of funding you’re allotted. Credit lines are unsecured, which means you do not need to put up any collateral to receive financing.

Invoice Factoring:

Also known as invoice financing, this funding option works similar to cash advances. Business owners use their account receivables to get immediate funding. A third party resumes responsibility for collecting outstanding invoices, paying you up to 100% of the unpaid receivable. The most obvious benefit of Invoice Financing is that there is no need to wait on the funds you’re owed. You receive an infusion of working capital upfront.

Bad Credit Loan:

We offer a selection of financing options for business owners with low credit scores. Borrowers do not need to sign a personal guarantee. This means your personal assets stay protected no matter what. At Clarify, a credit score of 500 or above is required to receive funding.

SBA Loan:

The Small Business Association (SBA) allocates a certain amount of funds towards small business owners. Through the Payroll Protection Program, you can get an SBA-backed PPP loan. If you’re eligible to receive this financing type, you may also qualify for PPP loan forgiveness.

Applying for Payroll Funding

Applications are judged on a case-by-case scenario to determine the loan size and type they qualify for. Overall, we keep our application process simple and the paperwork light, so you can get fast funding. We’ve outlined the main criteria our lenders look at below:

Operating Revenue:

Churning a profit is a clear indication of a viable business model. Lenders like to see your company is generating at least $10,000 a month in sales. The more money your business brings in, the better.

Age of Business:

Businesses that have been operating for a long time are usually considered less likely to fail. They’re a safer bet, from a lending perspective. Approval odds increase for companies who have been in business for over 6 months and go up again at the 2 year mark.


Keeping your liabilities low can help improve your debt to income ratio (DTI). Lenders will typically use your DTI ratio when determining how much you can afford to borrow. Having low amounts of debt, relative to income, can improve your odds of being approved for a large payroll loan.

Verification Documents:

We keep paperwork light to keep things moving. All our lenders need from you is your last 3 bank statements. Your bank statements will be used to validate the financial information you’ve provided.

Credit Standing:

Credit scores tell stories about our borrowing habits. Having a high credit score shows you’ve responsibly managed funds in the past.

Applicants with good credit are seen as lower risk and therefore have access to some of the most competitive loan products in the marketplace. That being said, all types of credit scores can be approved for financing. It’s also worth noting that your business credit score will matter more than your personal one, since you’re taking out a business loan.

Popular Uses for Staffing and Payroll Financing

Payroll loans are used for exactly what they sound like - payroll! That being said, payroll funding ultimately frees up working capital, allowing extra cash to be allocated towards a variety of priorities. Below are some of the most common ways payroll financing is used:

Growing Your Team:

As your business expands, you might need more help. It’s not uncommon for businesses to initially begin growing faster than their pocket book may be able to keep up with. Funding can be used to invest in the people who will help you scale growth and build your empire.

Avoiding Layoffs and Furloughs:

We understand how important your team is to the success of your business. Letting your employees go can have devastating consequences. Staffing loans can help you keep top talent and avoid turnover, and ensure you have the labor you need to get the job done.

Unexpected Expenses:

Sometimes, we do everything right and things still go wrong. If the money you allocated towards hiring ended up going elsewhere, we got you covered. We understand that emergencies happen from time to time. A business loan for payroll can be used to replace lost funds.

Pandemic Relief:

Many business owners have experienced a dip in revenue since the pandemic and require additional funds to cover cash flow gaps. Other companies have seen expenses rise after purchasing special supplies and sanitation materials needed to keep employees and the workplace safe. Payroll loans can reduce the financial burden of staffing costs, freeing up additional working capital to be used for other business expenses.

Taxes and Benefits:

Employees are an expensive, though worthwhile investment. Small businesses are required to pay 7.25% of every employee’s gross payroll. In addition to payroll tax, there’s also workers comp and unemployment to pay for. A business loan can be used to help cover these expenses.

What Are Business Loans for Payroll?

Payroll loans are used to describe different types of short-term financing. Under the umbrella of business loans for payroll, you’ll find a number of loan options, which vary in structure and loan terms. The most popular funding types are payroll cash advances and term loans.

Payroll financing is best used for covering short-term cash flow gaps, rather than as a long-term working capital solution. Business owners who use payroll loans are typically seeking to solve an immediate need for capital.

At Clarify, we offer online payroll loans. The main benefit to this lending model is speed. Unlike traditional banks, online lenders have considerably less paperwork demands, which helps speed things up.

If you’re in a bind, we understand waiting may not be an option. We work quickly to meet your most pressing needs, distributing funding in as little as 24-48 hours.

How Does Payroll Financing for Employers Work?

Small business owners typically use payroll financing as a bridge loan. In this way, they’re intended to cover a short-term working capital need. In most situations, the funds are specifically used to cover payroll costs.

Employers have a legal obligation to pay employees for their work. If a business owner delays payment for too long, there can be serious consequences. So, during times when cash on hand is limited, business owners need to come up with a quick solution to ensure their employees get paid. Payroll loans provide a work capital solution, where owners can borrow funds to be distributed to their staff immediately.

What Are the Benefits of Online Payroll Loans?

Securing financing through an online lender provides unique advantages. Below are some of the top reasons business owners choose to work with us over traditional lenders.

Competitive Rates:

We use our network of 75+ lenders to get you access to the most competitive interest rates and loan terms. Low interest rate financing starts at just 7%.

Fast Funding:

Unlike large banking institutions and traditional lenders which tend to be slow moving, online lenders work fast. At Clarify, you can receive funding in as little as 24-48 hours. You get the working capital you need without the wait.

No Hidden Fees:

When you choose Clarify, you can expect total transparency. Unlike other lenders, we don’t hide prepayment penalties within the fine print. Our contracts are written with simple terms that are easy to understand. What you see is what you get.

Low doc:

We get that you’re busy. Our application process is streamlined for maximum efficiency. We keep documentation light and only ask to see recent bank statements.

High Approval rates:

At Clarify, we understand that you’re more than your credit score. As an alternative business lender, we don’t have the same restrictions of large financial institutions. We look at applications holistically. We frequently approve borrowers who have had their application denied at credit unions and big banks.

Flexible Financing:

Choose from multiple loan products to find the right match for your needs. We understand that different business owners have their own preferences. We’ll tailor your loan offers based on the information you provide to your lending advisor. That way, you get financing that’s customized to your unique situation.

Frequently Asked Questions

Yes. We offer different financing options, including ones that are tailored towards borrowers with lower credit scores. A Clarify lending advisor can walk you through the different funding types if you’d like to learn more.
The difference between loans and factoring comes down to how each financing type is structured. Most loans, like term loans, are paid back using cash on hand, over time, following a pre-set schedule. With factoring, you repay borrowed funds using receivables, rather than funds you withdraw from your bank account.
Costs will vary depending on the loan structure and term. You can save on total costs by shortening loan length and increasing your payments. We offer different loan types in order to provide borrowers with financing options that closely match their preferred payment style.
No. We offer unsecured payroll loans. You will not be required to use your personal assets or property as security. No personal guarantee is needed.
The Small Business Administration (SBA) has a specific set of requirements for PPP loans. These requirements can be more stringent than that of alternative lenders. For second draw PPP loans, you’ll need to be a small business with under 300 applicants. A lending advisor can assist you with determining eligibility and applying.

Types of businesses that qualify for payroll financing

Approval requirements

  • keyboard_arrow_right In business for more than 6 months
  • keyboard_arrow_right At least $10,000 per month in gross revenue
  • keyboard_arrow_right Last 3 months of bank statements required for verification

Lending advisors committed to getting you funded today

When you choose Clarify, we consider you family -- and work with you through the ups and downs of running your small business.Manufacturing Financing Team

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"I contacted Clarify Capital when my business had a cash flow gap and I needed funds immediately to pay my employees. It was stressful -- until Bryan at Clarify came through and got us funded the same day. I highly recommend them! In case we have a seasonal downtrend in the next winter, I know I can count on Bryan to provide short term funding."

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