Best Payroll Loans: Get a Payroll Deduction Loan For Bad Credit

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Best Payroll Loans: Get a Payroll Deduction Loan For Bad Credit

Can a payroll loan help your business? Yes, in most cases a payroll loan can help your business. Most lenders consider payroll a general working capital expenditure. This means your payroll loan can be used for a variety of business expenses. There are many options available for payroll loans increasing the importance for you to do your research and select the best option. is a time-saving resource that allows you to apply online and receive multiple competitive offers within minutes. Keep reading to easily compare some of the top choices for payroll loans. 

What is a payroll loan?

A borrower can be issued a cash advance in the form of a payroll loan based on their status and income.  If you have identification and proof of income payroll loans can be easy to secure. 

Why would you need a payroll loan?

If you are short on cash a payroll loan can help balance your cash flows. A payroll loan is commonly used for immediate financial needs. This can include…

  • Travel
  • Repair
  • Purchase of inventory
  • Funds to pay employees

What is the difference between payroll loans and payroll factoring?

The primary difference between payroll loans and payroll factoring is that payroll factoring is not a loan. Companies operating with little credit or poor credit should look into payroll factoring. Funding decisions consider the credit rating of a business's customers rather than a credit score. 

Best Options for Payroll Loans

For Quick Funding

OnDeck - Payroll Deduction Loan For Bad Credit

Originally founded in 2017, OnDeck is one of the largest online small business lenders that can provide quick funding. 

Loan Amounts $5,000 to $500,000
APR Range As low as 9.99%
Repayment Terms Term loans up to 3 years
Time to Funding As fast as 1 day
Click “Check Rates” to apply to OnDeck

» MORE: OnDeck Business Loans Review


  • Transparent terms
  • Access to loans through business debit cards feature coming soon
  • Funds available quickly


  • Higher APRs
  • Origination fee
  • No factoring offered (all funding options incur debt)


FundBox is an invoice factoring company that services individuals and B2C entities. This fintech company can deliver fast funds up to $100,000.

Loan Amounts $1,000 to $100,000
APR Range 10.1% to 79.8%
Repayment Terms 3 to 6 months
Credit Score No minimum personal credit score required
Time to Funding A few minutes to several days
Click “Check Rates” to apply to FundBox 

» MORE: Compare Invoice Factoring Options


  • Finances invoices for individuals and small businesses
  • No minimum credit scores
  • Transparent terms


  • Minimum requirement 6 months in business and 6 months billed in your accounting software
  • No collection services
  • Transactions are full recourse

For Unpaid Invoices


BlueVine can provide capital for small to medium-sized B2B and B2G businesses. This fintech company is known for invoice factoring and servicing funding requests faster than most of its competitors. 

Line Of Credit
Loan Amounts $5,000 to $250,000
APR Range 15% to 78%
Repayment Terms 6 or 12 months
Time to Funding As fast as 24 hours
Click “Check Rates” to apply to Blue Vine 

» MORE: Compare Business Line of Credit Options

Invoice Factoring
Loan Amounts $20,000 to $5 million
APR Range 15% to 68%
Repayment Terms Up to 13 weeks
Time to Funding N/A
Click “Check Rates” to apply to Blue Vine 

» MORE: Compare Invoice Factoring Options


  • Fast and easy application process
  • Funding decisions are typically made within 24 hours
  • 80% of production is from repeat customers
  • No hard credit checks


  • No funding for B2C companies
  • Prefers personal FICO scores above 600
  • Factoring transactions are full recourse

Alternative Invoice Financing Options

Business Lines of Credit

A business line of credit can be used whenever you need as long as you stay under your approved limit. Although it can improve cash flow for your business the pros and cons should be considered. 


  • Balance cash flow
  • Only pay for what you use
  • Take advantage of more opportunities
  • Builds business credit


  • Extra charges and fees
  • Qualifying can be difficult
  • Temptation to misuse line of credit
  • Low borrowing limits

» MORE: Compare Business Line of Credit Options

Invoice Factoring

Invoice factoring can provide immediate cash flow with no collateral required. However, invoice factoring is very different than a business loan. Outstanding invoices are sold to a factoring company that pays you in a lump sum.


  • Immediate & ongoing cash flow
  • Higher approval rate
  • Outsource the task
  • No collateral required
  • Builds better customer relationships


  • High fees
  • Liabilities (you may be responsible for unpaid invoices)
  • Eligibility can be dependent upon customer payment track record
  • Lack of control

» MORE: Compare Invoice Factoring Options

What do you do if you can’t cover payroll?

Owning a small business can be an extremely rewarding opportunity that can allow you to share your passions and help others. However, it can have its share of ups and downs. Defaulting on payroll can result in lawsuits and other hassles so it’s important to take proactive measures to cover payroll. 

Let’s compare some options in the event you can’t cover payroll...

Payment planning

If you have outstanding debts or cannot cover payroll you should consider payment planning. Financing options are available that can provide a plan for you to pay back outstanding debts.

Separate business savings account

Setting up a separate business savings account can come in handy for emergencies such as not being able to cover payroll. You should allocate an appropriate amount of funds each month to this savings account to better prepare for emergencies. 

Open communication

It can be embarrassing to not be able to cover payroll, we get it. However, openly communicating with employees can result in many positives. It can provide the opportunity to collaborate as a team, reinforce core company values, and so much more. It can also help avoid brutally blindsiding employees when you tell them you are running out of money.

How PrimeRates Works

PrimeRates provides access to personalized business loan offers through our simple and quick pre-qualification application. Once you're pre-qualified, you can select the best offer for you and finalize the business loan application with the lender.

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    Finalize your loan offer with the lender you selected to receive your funds.


Ready to find the funding you need?

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See the online credit card applications for details about the terms and conditions of an offer. Reasonable efforts are made to maintain accurate information. However, all credit card information is presented without warranty. When you click on the “Apply Now” button, you can review the credit card terms and conditions on the issuer’s web site.

The offers that appear on this site are from third party advertisers from which PrimeRates receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). PrimeRates strives to provide a wide array of offers, but our offers do not represent all financial services companies or products.

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