The payment platform allows you to pay Sure payroll by credit card to maintain the cash flow of the business.
If you run a small business, you’ve probably heard about factoring. On paper, it sounds like a lifesaver: you sell your unpaid invoices to a factoring company, they give you cash upfront, and you use it to keep the wheels turning. But when you look a little closer, factoring has some serious downsides. For small businesses, especially those just starting out, these drawbacks can be a real pain in the back.
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What’s the Problem with Factoring?
Factoring seems like a great way to solve cash flow issues when clients take too long to pay. But it comes with strings attached—big ones.
It’s Expensive
Factoring companies charge fees, a percentage of the invoice amount. This might not seem like much, but it adds up. For example, if you sell $10,000 worth of invoices and the fee is 3%, you’re already out $300. And that’s just one round of factoring.
You Lose Control
When you factor in your invoices, the factoring company takes over the process of collecting payments from your clients. That can get awkward fast, especially if your clients feel pressured by someone they don’t know.
Not All Invoices Qualify
Factoring companies don’t take just any invoice. They’ll assess the creditworthiness of your clients, not just you. If your clients don’t meet their standards, they can refuse to factor in those invoices, leaving you stuck.
Ongoing Costs
Once you start factoring, it’s hard to stop. You get used to the quick cash, but the fees keep piling up. It becomes a cycle that can be tough to break.
Why Payroll by Credit Card Is a Smarter Option
Here comes Zil Money and it’s payroll by credit card features. Instead of handing over your hard-earned invoices to a factoring company, you can use your credit card to cover payroll when cash flow is tight.
You Stay in Control
With Zil Money, you’re in the driver’s seat. Your payees don’t even need to know you’re using a credit card for payroll. You manage your payments, keep your payee or employee relationships intact, and avoid the middleman entirely.
It’s Affordable
Using a credit card for payroll is much cheaper than factoring, especially if you’re paying off your balance quickly. The platform eliminates extra transaction fees on payers and payee charges for receiving a payment.
No Strings Attached
Unlike factoring, where you’re tied to the creditworthiness of your clients, using your credit card is easy and simple. You pay what you owe, and that’s it. There are no long-term contracts or complicated agreements to worry about.
Accessible Anytime
Factoring takes time—there’s paperwork, approvals, and waiting for funds to hit your account. Zil Money’s users can process payroll in minutes, right when they need it.
How Zil Money Makes It Easy
Zil Money’s payroll by credit card feature is built to be user-friendly, even if you’re not a finance expert.
Sign Up for Free
Creating a Zil Money account is quick and doesn’t cost a dime. You can get started immediately with an email address and without any upfront investment.
Link Your Credit Card
Add your credit card details to the platform. Zil Money works with most major credit cards, so you’re covered whether you use Visa, Mastercard, or another option.
Run Payroll Your Way
Pay your team through ACH, wire transfer, virtual cards, or check mail—exactly as your payee prefers. Zil Money processes the payments using your credit card, giving you instant access to funds when you need them.
Why Small Businesses Love Payroll by Credit Card
Let’s be real: many small businesses run on tight margins. Cash flow issues happen no matter how well you plan. Zil Money’s payroll by credit card feature gives you the ability to keep everything moving without the stress of factoring.
- You can make payroll on time, no matter what. Your employees stay happy, and you avoid late payment headaches.
- The platform helps businesses and individuals to earn reward points, discounts, and cashbacks on credit card transactions. Why not make payroll work for you and gain extra money while spending?
- No waiting around for approvals or third-party collections. You get access to funds instantly via the software’s payroll by credit card feature.
When to Use Payroll by Credit Card
This isn’t a tool you’d rely on every single week, but it’s a fantastic backup plan when things get tight. Here are a few scenarios where it shines:
- Seasonal Slumps: If your business has slower months, you can use your credit card to bridge the gap.
- Unexpected Expenses: Need to repair equipment or stock up on inventory? Pay the vendor with your credit card and use your cash for the emergency.
- Client Payment Delays: Waiting on a big check from a client? Payroll doesn’t have to wait just because they’re dragging their feet.
Why Check Payments via Credit Card for Businesses?
- Even during tight cash flow, when your payee requests checks, you can send them a check mail via credit card.
- The platform eliminates payee charges on credit card transactions. Vendors, suppliers, and employees can receive payments without worrying about the hidden charges.
- Users can earn rewards, discounts, and cashback on credit transactions and use them later for business or individual activities.
- The software allows you to make payments via credit cards, such as ACH, wire transfer, virtual cards, and check mail.
- You can easily integrate your payroll software with the platform and make payroll payments via credit card to pay employees simultaneously without trouble.
What are The Other Uses of Credit Cards?
- Pay Vendors by Credit Card: If your vendor does not accept credit cards, you can pay them. It can be a lifesaver when you need to settle accounts but don’t have the cash in hand.
- Pay Rent with Credit Card: You can use your credit card to pay rent, ensuring you never miss a due date—even during slow months.
- Pay Checks via Credit Card: Using Zil Money, you can issue checks directly from your credit card without manual handling. The platform’s pay-by-credit card service is a convenient way to handle one-off payments or settle invoices when the payee requests check payments.
Conclusion
Factoring might seem like the easy way out when you’re dealing with cash flow problems, but it comes with a lot—fees, loss of control, and ongoing costs. Zil Money’s payroll by credit card solution gives you a better option. It’s fast, flexible, and puts the power back in your hands.
If you’re tired of jumping through hoops just to keep your team paid, give the platform a try. You’ll not only keep your payroll running smoothly, but you’ll also save money along the way. And honestly, isn’t that what every small business owner needs? Sign up for free today and see how much easier payroll can be.
