Parafin, a leading provider of embedded financing, today announced a strategic partnership with Gusto, a leading platform for small businesses to manage their payroll, HR and benefits, serving more than 400,000 businesses. Together, the companies launched Payroll Bridge, powered by Parafin, which offers a line of credit to cover payroll.
For many small businesses, payroll is the single most important and time-sensitive expense. Even a short-term cash flow gap can put employers in the difficult position of delaying paychecks or making trade-offs that hurt their business. Payroll Bridge was designed to solve this challenge, giving 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,” said Vineet Goel, Chief Product and Technology Officer and Co-founder at Parafin. “This launch illustrates the broader potential of embedded financing to make credit available at the exact moment it’s needed.”
“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. Together, we’re innovating and building tools designed specifically for the realities of running a small business.” — Dan Loomis, GM and VP of Gusto Money
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.
With Payroll Bridge, Parafin and Gusto are setting a new standard for how small businesses manage payroll, giving them access to a line of credit right when it’s needed to keep employees paid on time. This partnership reflects their shared vision: empowering entrepreneurs with the tools to run their businesses with confidence.
