Business Payroll Loans

  • Financing from $10K to $750K
  • Get approved in 24 to 48 hours
  • Low interest rates starting at 7%
  • 6-month to 2-year loan repayment 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

Despite our best efforts, things don’t always go as planned. Business slows, or a huge expense comes up out of nowhere. Your budget blows 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 provide a quick working capital solution so you can meet your obligation to your employees. Funds can help bridge cash flow gaps and ensure staff is paid on time and in full.

At Clarify, we offer competitive small business 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 to 48 hours.

Top 6 Payroll Financing Types

Different business financing types have their own benefits. Prospective borrowers typically discuss their specific business objectives with a lending adviser to determine which funding type fits their situation best. Finding the best loan for your financial needs depends on your circumstances and preferences — we’re here to help!

Short-Term Loan

Term loans, also known as traditional loans, are one of the most popular financing types. You may have experience with a term loan, such as an auto loan or student loan. Term loans are structured in a simple and straightforward way. You borrow a predetermined amount, which is paid back on a regular schedule, such as monthly payments, 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) or payday loan, 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 to disperse on payday.

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 they can dip into whenever needed. Compared to credit cards, interest rates are typically lower for business lines of credit. There’s no penalty for not using the full amount of funding you’re allotted. Credit lines are unsecured, which means you don’t need to put up any collateral to receive financing.

Invoice Factoring

Also known as invoice financing, this funding option works similarly to cash advances. Business owners use their accounts receivable to get immediate funding. A third-party factoring company assumes responsibility for collecting outstanding invoices, paying you up to 100% of the unpaid receivable. The most obvious benefit of invoice financing is that there’s no need to wait for customers to pay 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 don’t 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 Administration (SBA) allocates a certain amount of funds to help small business owners. Through the Paycheck Protection Program (PPP), you can get an SBA-backed loan. If you’re eligible to receive this financing type, you may also qualify for PPP loan forgiveness.

Applying for Payroll Funding

Loan applications are judged on a case-by-case basis 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 providers look at below.

Operating Revenue

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

Age of Business

Businesses 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 in business for over six months and go up again at the two-year mark.


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

Verification Documents

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

Credit Standing

Credit scores provide evidence of previous borrowing habits. Having a good credit history shows you’ve responsibly managed funds and can result in a more favorable annual percentage rate (APR).

Applicants with good credit are seen as lower risk and have access to some of the most competitive loan products in the marketplace. That said, all types of credit scores can be approved for financing. A less favorable credit score may result in a higher interest rate. 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 that: payroll. That said, payroll funding frees up working capital, allowing extra cash to be allocated toward 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 begin growing faster than their pocketbook can keep up with. Funding can be used to invest in the people you need to 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, 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 toward hiring ended up going elsewhere, we’ve 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. The U.S. government initiated the Paycheck Protection Program (PPP) to assist companies during COVID-19, but the program ended on May 31, 2021. Now, 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 but worthwhile investment. Small businesses are required to pay a 7.25% tax on every employee’s gross payroll. In addition to the payroll tax, employers are responsible for workers’ compensation and unemployment. A business loan can be used to help cover these expenses.

What Are Business Loans for Payroll?

Payroll loans are 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 of this lending model is speed. Unlike traditional banks, online lenders have considerably fewer 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 funds in as little as 24 to 48 hours.

How Does Payroll Financing for Employers Work?

Small business owners typically use payroll financing as a bridge loan to cover a short-term working capital need. In most situations, the funds are 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. When cash is limited, business owners need to come up with a quick solution to ensure their employees get paid. Payroll loans provide a working 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 Clarify Capital 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 traditional bank loans that tend to be slow-moving, online lenders work fast. At Clarify, you can receive funding in as little as 24 to 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.

Fewer Documentation Requirements

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 as large financial institutions. We look at applications holistically. We frequently approve borrowers who have had their applications 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 adviser. That way, you get financing customized to your unique situation.

Payroll Loan FAQ

Yes. We offer different financing options, including ones tailored to borrowers with lower credit scores. A Clarify lending adviser can walk you through the different funding types.
The difference between loans and factoring comes down to how each financing type is structured. Most loans, like term loans, are paid back following a pre-set schedule. With factoring, you repay borrowed funds using receivables rather than funds you withdraw from your bank account.
Costs vary depending on the loan structure and term. You can save on total costs by shortening the loan length and increasing your payments. We offer different loan types to provide borrowers with financing options that closely match their preferred payment style.
No. We offer unsecured payroll loans. You’re not required to use your personal assets or property as security. No personal guarantee is needed.
The SBA has specific 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 adviser can help determine your eligibility and assist you with the application process.

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

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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