Users can easily pay Paycom payroll by credit card without traditional factoring obligations.
Payroll’s the bread and butter of keeping your team running strong—no one likes waiting on their paycheck. If cash flow’s got you sweating and you’re stuck, instead of factoring, switch to credit cards. Paying payroll with a credit card can save your business’s lifeline. Small businesses and owners can keep things rolling smoothly and make your crew happy with credit cards.
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Why Credit Cards and ‘Not’ Factoring?
- Factoring depends on the customer’s creditworthiness, not your business. If your clients have poor credit or if your invoices are not deemed creditworthy, obtaining funds through factoring can be challenging.
- Setting up a factoring arrangement and getting funds can take time, especially for new clients. It can delay or not align with immediate payroll needs, which can cause payment postponements.
- Factoring fees can be substantial, reducing your overall revenue. These costs might outweigh the benefits, particularly for small businesses with tight profit margins.
How to Pay Payroll by Credit Card?
Zil Money offers payroll by credit card to pay employees quickly and efficiently. Businesses and individuals can process payments from credit cards during low cash flow times. For example, a small business owner can easily use their credit card to fund payroll through the platform and their team can get paid on time. Small businesses can make simultaneous payroll payments without hidden fees or extra charges, even when there is no cash to pay.
Can a Business Integrate Payroll Software with the Platform?
Zil Money allows you to pay payroll by credit without relying on traditional loans or factoring. Users can integrate their payroll software with the all in one platform easily and import data via Excel or CSV files. The platform allows businesses to use their cards to pay payroll without the restriction of the payroll provider. The payment will be made by the platform, but the payroll process will be handled by payroll software.
What are The Benefits of a Credit Card?
1. Boost Employee Morale: Businesses with unpredicted and fluctuating income can utilize the pay by credit card feature to maintain payroll consistency. Employees stay secure and happy knowing their paychecks will always arrive on the exact date and time.
2. Maximize Perks: Users can use their credit cards for payroll, utility bills, supplier payments, rent and earn points, cashback, or discounts easily. These rewards can go toward reducing costs or funding perks like team outings or tech upgrades for the office.
3. Tax Savings: The user can pay for marketing campaigns, client lunches, or software subscriptions through credit card transactions. They can be written as business expenses and will be eligible for deductions. Users can centralize payments with Zil Money and easily track and maximize their tax benefits while keeping financial records tidy.
4. Adequate Cash Flow: Imagine your business has 20-25 team members, and meeting payroll deadlines feels like a monthly challenge. Users can pay with Zil Money’s credit card payroll option to give employees payment without immediate cash outflow. Here, a business can meet payroll obligations while keeping the working capital intact.
Payroll Factoring Or Payroll by Credit Cards
Factoring
Invoice factoring is the process of selling your unpaid invoices to a factoring company, which provides immediate cash. This cash can then be used to cover payroll or other expenses.
- Factoring charges a fee that can eat into your revenue, typically ranging from 1-5% of the invoice value or more.
- The factoring company may communicate with your clients to collect the debts, which could affect your relationship with them.
- You can only factor in receivables, meaning this method works only if you have invoices to sell.
Payroll by Credit Card
Payroll by credit card involves using a credit card to pay employees. The platform allows you to make payments via ACH, wire transfer, virtual cards, and check mail via credit cards.
- You can use credit cards for various expenses, including payroll, utilities, rent, and even vendor payments.
- You get an extended period to repay the credit card balance. It provides you with more time to manage cash flow.
- No need for loans or borrowing money.
- Users can increase their credit score with credit cards for the future of the business.
- No need to worry about asking for money from someone—just have your own.
Employees No Need To Pay To Receive Credit Card Payments!
Zil Money eliminates payee charges on credit card transactions. Users can pay vendors, suppliers, landlords, and employees without any transaction charges from the payee. Employees or the payee can receive the full amount transferred without losing money.
How Payroll by Credit Card Happens
- The payroll software will run the payroll as usual.
- Zil Money charges your business or personal credit card.
- The platform funds the payroll-connected checking account.
- Users can compensate employees without any hold.
Conclusion
Paying payroll with credit cards is a totally modern feature for small businesses struggling with cash flow. Users can avoid hefty fees and the trouble of waiting for client payments, which usually happens with factoring. Zil Money allows you to use your credit card to pay employees, keep the cash flowing, and even rack up rewards like cash back or points. There are no hidden charges for employees or payees means everyone gets their full paycheck without a hitch. It’s a smoother, quicker way to stay on top of payroll and keep your team happy.
