Parafin and Gusto Partner to Launch a Payroll Line of Credit for Small Businesses

Parafin and Gusto Introduce Payroll Bridge for Small Businesses

Parafin, a leading embedded financing provider, has partnered with Gusto, the payroll and HR platform serving over 400,000 businesses. Together, they launched Payroll Bridge, powered by Parafin, offering a line of credit to help small businesses cover payroll. This solution lets business owners access funds directly within Gusto, ensuring they pay employees on time.

Payroll is often the most critical and time-sensitive expense for small businesses. Even short-term cash flow gaps can force employers to delay paychecks or make trade-offs that harm their operations. Payroll Bridge solves this challenge by giving business owners simple, transparent access to financing.

Vineet Goel, Chief Product and Technology Officer and Co-founder of Parafin, stated, “Partnering with Gusto allows us to address one of the most pressing small business challenges, paying employees even when cash flow is tight. This launch shows how embedded financing delivers credit precisely when businesses need it.”

Dan Loomis, GM and VP of Gusto Money, added, “Small businesses often face cash flow gaps that threaten payroll. Parafin and Gusto developed Payroll Bridge to help business owners maintain liquidity and pay employees on time. Together, we’re building tools that reflect the realities of running a small business.”

How Payroll Bridge Works

Payroll Bridge leverages Parafin’s Pay Over Time product, allowing businesses to defer payments on expenses directly at the point of need. This installment-style credit option goes beyond Parafin’s existing products by analyzing unstructured banking activity, offering a clear, real-time view of a business’s financial health.

Through this partnership, Parafin and Gusto provide small businesses with reliable payroll financing exactly when it’s needed. The initiative reflects their shared mission: empowering entrepreneurs with tools to manage operations confidently and maintain financial stability.

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News Source: Businesswire.com