Friday payroll runs whether you have the cash or not. When a slow week, equipment failure, or seasonal lull leaves you short, payroll bridge funding gets you through. Here's how it works, what it costs, and when to use it.
Why restaurant payroll gets squeezed
Two-week lookback: a single slow week impacts the next payroll cycle. Equipment failure (broken walk-in = $8K replacement). Vendor catching up on past invoices. Slow tourist season. Catering deposit that hasn't cleared. None of these are existential — but Friday payroll won't wait for them to resolve.
How payroll bridge funding works
Apply Wednesday morning, funded Thursday afternoon, payroll runs Friday on time. Loan amounts $10K-$100K typical for payroll-only bridges. Repayment over 4-12 weeks via daily or weekly ACH. Designed specifically for short-term liquidity gaps — not long-term capital needs.
Cost of payroll bridge funding
Higher cost per dollar than longer-term capital — typically 1.10-1.25 factor rate over 4-8 weeks. For a $20K bridge over 8 weeks, expect to repay $22-$25K. Annualized that's expensive (50-100% APR equivalent) but the absolute dollar cost is manageable for the urgency it solves.
When NOT to use payroll bridge funding
If you're using bridge funding for payroll month after month, you don't have a bridge problem — you have a structural cash flow problem. Each round of bridge funding is more expensive than the last. Address the root cause: increase pricing, cut payroll, restructure schedule, or look at longer-term working capital that addresses the gap properly.
Better long-term alternative: line of credit
If payroll gaps are recurring (every 2-3 months), a business line of credit is a better structure. Pay only on what you draw, repay and re-draw, no fixed term. Approval is harder than bridge funding but the long-run cost is far lower. Build a line of credit BEFORE you need it.