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Payroll Loans for Small Business

Dated October 14, 2026

Payroll loans for small business are short-term financing that helps you pay employees on time when cash is tight, such as when customers pay late or sales slow down for a season. They aren't usually a separate loan product. Owners typically use a few common kinds of business financing for payroll.

Kinds of financing owners use for payroll

• Business line of credit. Draw only what you need for each payroll, and repay it as revenue comes in.
• Invoice financing or factoring. Get cash for invoices your customers haven't paid yet.
• Short-term working capital loan. A lump sum covers operating costs, including payroll.
• Merchant cash advance. It's repaid from future card sales.

Questions to ask yourself first

• Is this a one-time gap or a recurring one?
• How much do you need, and for how long?
• When will the revenue that repays it come in?
• What are the full repayment terms?

What lenders typically look at

• Time in business
• Revenue and cash flow
• Business and personal credit
• Recent bank statements
• Existing debt

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