Client Can’t Cover Payroll This Month: Options Bookkeepers Can Point To

What You Are Looking At

A payroll gap is rarely a surprise to the bookkeeper. It shows up weeks early as receivables that slipped, a slow month, a big vendor payment, or a seasonal dip the owner hoped would be shorter. The run date is fixed; the cash is not.

In the Federal Reserve Banks’ 2024 Small Business Credit Survey, paying operating expenses was among the most common reasons employer firms sought financing, ahead of expansion.1 A payroll gap is the ordinary case, not the exception, and funders see it every week.

Which Products Close a Payroll Gap

See payroll funding for the owner-side view of each product. Nothing here is a guarantee of approval; the specialist says which products the file supports.

Signs That Say Fund It, and Signs That Say Stop

A referral is worth making when:

• 1+ year in business and $20,000+ in average monthly revenue.
• A business bank account with active deposits.
• The 3 most recent business bank statements (4 in NY, CA or VA), complete.
• A need of $10,000 to $500,000+ in working capital, up to $2 million on some products.
• The gap has a cause and an end: a late invoice, a seasonal dip, a one-off expense.
• Revenue after the gap covers the repayment without creating the next gap.

Say so plainly when:

• Payroll has been short three months running. That is a margin problem, and funding delays the conversation the owner needs to have.
• Deposits are falling. The funder sees that first.
• The business already has several advances and the new money would service the old. See what advisors can do when a client already has an advance.

What the Specialist Needs

• The owner’s name and number to start.
• The 3 most recent business bank statements (4 in NY, CA or VA), every page, if you have access.
• The payroll amount and run date.
• Any open loans or advances, with balances.
• What caused the gap and when it closes, in a sentence.

You already have most of this in the books. Sending it with the referral is what makes a 24-hour timeline possible.

How the Referral Works, Step by Step

RAN Funding is a broker, not a lender. One application for our lender network and one dedicated specialist. You make the introduction; we handle the funding process.

1. Sign up on the partner page. Two minutes. Select Bookkeeper. We call within one business day to walk through the partner agreement.
2. Make the introduction. The owner’s name and number, and a heads-up that we will be calling. No licensing is needed for a basic referral introduction.
3. The specialist reviews the file and calls the owner within one business day. If you want to be on the call, say so.
4. The owner sees the options the file supports, with every term explained before anything is signed.
5. The deal funds and you are paid the referral commission in the partner agreement. Renewals on your referrals pay you too.

Your client stays your client. RAN Funding contacts them only about the funding they asked for. No cross-selling, no marketing lists.

How to Raise It With the Client

Owners facing a payroll gap are embarrassed and tend to go quiet. Lead with the number and the fix:

• “Friday’s payroll is $38,000 and we will have $21,000. Here is what I think we do.”
• “Before you stall the vendor, let me have someone look at a short working capital piece. They can usually answer in a day.”
• “If this is going to happen every quarter, a line of credit set up once is the better fix.”

What to Keep in Mind

Get the client’s agreement before sharing anything. Do not describe yourself as a lender, and do not promise an approval. Nothing is guaranteed until underwriting reviews the file.

Disclosure rules vary by state. California, for example, requires a provider extending a specific commercial financing offer to give the recipient disclosures at the time of the offer. MCA disclosure laws by state is a starting point, not legal advice.

How to Start

Go to the RAN Funding partner program page and fill in the short form. Say so if you have a client who needs funding now.

For the program as it applies to your profession, see the guide for bookkeepers and tax preparers. You can also call 1-877-522-6045, Monday to Friday, 9am to 6pm ET.

Common Questions