A quick funding process that offers payroll business loans to business owners.
Last Updated on March 25, 2025
Shield Funding TeamNext to inventory or rent, payroll can be one of the biggest monthly expenses for many business owners. On top of the actual payroll expense companies like Paychex or ADP also charge additional fees. Additionally, payroll costs rarely align with cash flow if you pay your employees on a weekly or bi-weekly basis when your customers only pay monthly. Failing to pay employees on time could lead to angry servers waiting on tables and annoying customers, or good employees just walking out.
If you make the decision to rob Peter to pay Paul you could find yourself in a bad cash flow cycle. You delay paying vendors in order to pay your employees, but then receive late or untimely product shipments, which hurt sales, which hurt your ability to pay your employees…and it becomes a vicious cycle.
This is why small business owners often seek out business loans to cover payroll expenses. It is preferable to stay current with vendors and not experience any delay in receiving product but to also pay employees on time. Business loans for payroll will help you accomplish both and Shield Funding makes it easy to acquire business funding for your payroll expenses. You can apply online and can have an answer as fast as the same day you apply.
What Do I Need to Qualify?
Below is a list of the general requirements to get approved for business funding with our basic program.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:
OR
A business line of credit or LOC is one of the best options for business owners whose cash flows do not align with the pay cycle. That is because a LOC is renewing. The line is kept open and capital can be accessed whenever you need it, but when you repay it you can borrow against it again. The payroll applications are obvious. Borrow five grand for payroll on Friday, take in your weekend sales, and pay off the line of credit on Monday.
A line of credit’s flexibility is why many financial advisors suggest that all business owners keep one open, just in case. While a line of credit has an upper borrowing limit, like a credit card, it can remain open for one or more years or indefinitely. At some point, some lenders freeze lines of credit and convert them to term loans.
A merchant cash advance or MCA is another lending option to meet your needs. If your sales tend to fluctuate and you know you can repay the loan quickly, then it could be an excellent choice. An MCA is borrowing against your future sales, and repaying the lender out of your future sales. To figure out how much credit to extend you, the underwriter will ask to see credit card or bank statements. From these, they will calculate average cash inflow. They want to know that you have money coming into the business and its frequency, so qualifying for an MCA can be easy and quick.
You don’t repay the advance until you are making money, and an MCA is repaid when you swipe a credit card. The lender takes a percentage which includes their principal and profit of each sale. This form of funding works quite well for restaurants and hair salons with high credit card sales.Interest rates on an MCA can start at 15% and go up from there to the triple digits if looked at on an annual basis. Your agreement could allow your lender to continue to raise the rate if it is taking too long for them to be repaid. A fast business loan, business credit card, or short term business loan could all have a much lower cost of capital and be better for payroll expenses.
This is a short term small business loan that you can use for any type of expense. You can use it to cover seasonal swings in business, pay a new employee, or open a completely new location. You can even receive funds the same day. Whatever you need for your business, these short term business loans will help you get it.
We offer up to $1,000,000 in funds for business owners. And with interest rates of 12–45%, you can get a better deal than you would with some traditional lenders. As long as you’ve been in business for two months, earn $8,000 or more per month, and have a credit score of 500 or more, you can qualify for one of these loans.
Our terms range from 12–36 months, so you can get the amount and terms that work for you. You can also receive funds within 24 hours directly to your account so you can take care of your business needs quickly.
Apply for Payroll Business Loans!
Work with a direct lender and get a business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for two decades.
Bank of America’s Cash Secured Business Line of Credit is designed to help small businesses manage essential expenses, including payroll. By securing the line of credit with a refundable deposit starting at $1,000, businesses can access funds to cover payroll and other operating costs, ensuring smooth operations during cash flow fluctuations. Regular, on-time payments not only assist in maintaining payroll commitments but also help establish a positive credit history, potentially leading to an unsecured line of credit in the future. This financial tool is particularly beneficial for businesses with at least $50,000 in annual revenue and a minimum of six months in operation.
Payroll loans are financial products designed to help businesses cover their payroll expenses, especially during times when cash flow might be tight. This type of “payroll” loan simply refers to how one will use the money instead of a particular type of loan. They can be particularly useful for small businesses that experience inconsistent revenue streams or unexpected expenses. These loans ensure that employees are paid on time, which can be crucial for maintaining morale and trust within the company.
You also might want your form of funding to be accessible multiple times. Once a loan is repaid you can no longer borrow from that same loan. To obtain more capital from the lender you would have to fill out another loan application. This could become burdensome if you frequently need to dip into funding sources to make payroll.
It is far better to think longer term and to apply for a form of capital that will cover payroll needs now and in the future. As well, repayment should not further hurt your business but should align better with your cash flows. In short, a business loan for payroll should meet the following criteria;
These goals can be met with several different types of funding options. You should compare each of them to your business need to pick the one that is best for you.
Payroll business loans offer fast, reliable funding to help you cover employee wages and keep your operations running smoothly. Whether you’re facing a temporary cash flow gap, waiting on delayed customer payments, or experiencing a seasonal slowdown, payroll loans ensure your staff gets paid on time. These loans are especially helpful for businesses looking to hire new employees, increase hours for part-time staff, or support growth during busy periods.
Payroll funding can also give your business peace of mind during unexpected situations, like emergency expenses or short-term revenue drops. With quick access to capital, you can maintain team morale, avoid disruptions, and focus on growing your business. Payroll business loans are a flexible solution that keeps your workforce supported and your business moving forward.
Payroll business loans can be a smart solution when you need fast access to funds to cover employee wages and keep operations running smoothly. These loans are best suited for short-term needs and offer some of the most competitive rates and terms we provide. To qualify, a fair credit score is typically required—if your credit score is below 650, you may want to consider our business cash advance options instead. Payroll loans are especially helpful if you don’t meet the strict requirements of traditional lenders, but it’s important to consider a few key details before applying. Because these loans are paid back over a shorter period, the regular payment amounts may be higher than those of a long-term loan. Be sure to evaluate the total cost of borrowing and whether it fits into your cash flow. Taking time to assess your repayment ability and business goals will help you decide if a payroll loan is the right choice for your situation.
When applying for a payroll business loan, lenders consider several aspects of your business to determine eligibility. While your credit history is taken into account, it’s often less important than other factors. More emphasis is placed on your business’s current financial health, including how long you’ve been operating, the stability of your monthly cash flow, and recent banking activity. Lenders may also look at your industry type, how seasonal trends affect your income, and your track record of managing expenses. Because payroll loans are designed to provide quick funding, approval decisions are typically based on a clear picture of your business’s ability to handle short-term repayment.
The amount you can qualify for with a payroll business loan largely depends on your business’s monthly revenue and the activity in your bank account. Lenders typically approve funding based on a percentage of your average monthly deposits—often around 70% or more. For example, if your business consistently deposits $50,000 per month, you might qualify for a loan in the range of $35,000 or higher. To determine eligibility, lenders review your cash flow, deposit consistency, and overall financial health. Businesses with a reliable income stream and strong financial history are more likely to receive higher loan amounts to help meet payroll needs quickly and efficiently.
The cost of a payroll business loan is determined by the factor rate and the length of the repayment period. For instance, if you borrow $20,000 for 12 months at a factor rate of 1.15, the total repayment amount would be $23,000, with $3,000 representing the financing cost. Unlike traditional interest rates, the factor rate is set upfront, so you’ll know exactly how much you’ll owe over the life of the loan. Repayment is typically made through either daily or weekly withdrawals, depending on your agreed terms. This structure offers quick access to the funds you need for payroll while providing a clear and consistent repayment plan.
This is likely one of the most important benchmarks you will use to compare lending options. If one lender offers a better interest rate than the other and all other things remain the same you can have a good idea of the rate comparison. You must keep in mind that different products such as credit cards or car loans work using traditional financing interest rates and APR, but many alternative funding programs quote in a factor rate or annualized interest rates so try to compare options based on the types of loans they are most similar to. And ultimately it will come down to what you have to pay back when all is said and done.
When comparing lending options, whether quoted in factor rates, interest rates, or any other framework, what is most important is what you will pay back when all is said and done. For this reason you should always try to look at what you will pay over the entire life of the loan.
Approval times vary by lender, but some online lenders offer same-day or next-day approvals, while traditional banks may take a few days to weeks. The speed depends on factors like your business’s financial health, credit score, and loan amount.
Yes, seasonal businesses can qualify, especially if they have a consistent revenue pattern during peak months. Some lenders offer flexible repayment terms that align with seasonal cash flow fluctuations.
No, businesses of all sizes can use payroll loans to manage employee wages. However, loan terms, approval criteria, and funding limits will vary depending on the business’s size, industry, and financial stability.
Yes, many lenders allow payroll loans to be used for both full-time employees and independent contractors, as long as the funds are used for labor-related expenses.
It depends on the lender. Some payroll loans are unsecured, meaning no collateral is required, while others may require business assets, receivables, or personal guarantees to secure funding.
Yes, if you find a lower interest rate or better repayment terms, you can refinance your payroll loan through another lender to reduce costs and improve cash flow. Some lenders also allow early repayment without penalties.
