Embedded finance products provider Parafin said on Sept. 18 that it has partnered with payroll, benefits, and HR solutions provider Gusto to release Payroll Bridge, powered by Parafin, which provides small businesses with a line of credit to cover payroll.
Payroll Bridge was designed to give business owners a simple, transparent way to access financing directly within Gusto so their employees get paid on time.
“Partnering with Gusto allows us to solve one of the most pressing challenges for small businesses—ensuring they can make payroll even if cash flow is tight,” Vineet Goel, chief product and technology officer and co-founder at Parafin, said in a statement. “This launch illustrates the broader potential of embedded financing to make credit available at the exact moment it’s needed.”
Payroll Bridge leverages Pay Over Time, Parafin’s newest product, which allows businesses to defer payment on any expense directly at the point of need. Pay Over Time expands beyond Parafin’s capital products with an installment-style credit option. Unlike Parafin’s existing products, which use platform sales data for underwriting, Pay Over Time introduces a new model that analyzes unstructured banking activity to create a clear, real-time picture of business health.
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“Too often, small businesses struggle with short-term cash flow gaps that can put payroll at risk. Payroll Bridge, developed in partnership with Parafin and delivered through Gusto Money, helps close that gap by making it easier for business owners to manage cash flow and keep their teams paid on time,” said Dan Loomis, general manager and vice president of Gusto Money. “Together, we’re innovating and building tools designed specifically for the realities of running a small business.”
The media release stipulates that all lines of credit are issued by Celtic Bank and are subject to credit approval, identity verification, and to periodic review and may change without notice. Lines of credit are governed by the Line of Credit Agreement and Parafin’s Privacy Policy. Bank transfers are subject to review. Gusto provides access to Payroll Bridge through its partnership with Parafin. Payroll Bridge is offered by Parafin, not Gusto. Gusto doesn’t review applications, make credit or lending decisions, provide credit, service loans, or collect repayments.
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