Short answer: Start by talking to your customers about late invoices and timing your own bills. If there’s still a gap, a business line of credit is one of the cleanest ways to cover payroll and pay it back when money comes in.
First, figure out the size of the gap
Add up next payroll, payroll taxes and anything else due before money comes in. Then list what you’re expecting to receive and when. The difference is the number you need to solve for.
Options to close the gap
1. Chase what you’re owed
A friendly call to customers with open invoices often speeds things up. Offer an easy way to pay, like a payment link.
2. Rearrange your own bills
Ask suppliers for a short extension. Most would rather wait a week than lose a good customer.
3. Use a line of credit
If timing is the problem and the money is coming, drawing on a line of credit lets you make payroll on time and pay it back as invoices clear. You only draw what you need for that pay period.
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4. Avoid the risky moves
Paying payroll late, skipping payroll taxes or running payroll on personal credit cards can create much bigger problems later.
Plan for next time
If slow months are predictable, set up your line of credit before you need it. It’s much less stressful to have the money ready than to hunt for it on Thursday afternoon.
