You’re checking your bank account, running numbers again, and trying to stretch the cash you have left. Payroll is due in three days. Your team is expecting to be paid on time, but your biggest clients haven’t paid their invoices yet.

You’ve done the work. You’ve billed on time. But the money isn’t in your account.

Now you’re stuck between unpaid receivables and your employees’ paychecks.

So what do you do when you can’t make payroll, but clients still owe you?

Let’s keep this simple. Here’s what’s happening, what you can do right now, and how to avoid this in the future.

1. Face the situation head-on

Don’t wait. If you already know you can’t cover payroll, act now.

Start with the numbers. List exactly what you owe in wages and when it’s due. Then list out your accounts receivable—who owes you, how much, and when they’re supposed to pay.

From there, figure out the gap. That number tells you how much you need to cover, and how fast you need to cover it.

Ignoring the situation won’t fix it. You need a plan, and you need it today.

2. Talk to your clients (and don’t sugarcoat it)

If you’ve done the work and sent invoices, you have every right to ask for payment—especially if the due date has passed.

Reach out to your slow-paying clients. Be clear and direct. Ask when you can expect payment. You don’t need to explain your payroll situation, but you do need to confirm that money is on the way.

If you don’t ask, you won’t get answers. And if a client is having their own cash flow problems, you’ll want to know sooner rather than later.

Here’s a quick script you can adapt:

“Hi [Client], I wanted to check in on invoice #123, which was due last week. Can you confirm when payment will be processed? Let me know if anything is holding it up.”

Don’t chase. Just ask. Keep it short and clear.

3. Consider payroll receivables financing

If you’ve followed up with clients but you still won’t have cash in time, payroll receivables financing can help.

This is a short-term option that gives you the money to cover payroll now, based on the value of your outstanding invoices.

You don’t have to take on new debt. You’re simply getting an advance on what you’re already owed.

Here’s how it works:

• You apply with a financing provider like Aurous Financial.
• You show them your accounts receivable (invoices from clients).
• If approved, they advance you a portion of those receivables—often within a day.
• When your client pays the invoice, the provider takes their portion and sends the rest to you.

It’s fast, flexible, and doesn’t rely on your credit score. It’s based on your clients’ ability to pay, not yours.

If you’re in a bind and you’ve got outstanding invoices, payroll receivables financing gives you breathing room.

4. Be honest with your team—without panicking them

You don’t need to tell employees every detail of your cash flow. But if payroll will be late, or if you’re working to secure short-term financing, say something.

People talk. And when communication is unclear, rumors spread.

Here’s one way to say it:

“We’re expecting client payments shortly and are finalizing short-term financing. Payroll may be delayed by a day or two, but we’re working to resolve it quickly.”

That’s enough transparency to keep trust intact, without oversharing.

5. Build a better system going forward

If this isn’t the first time you’ve cut it close, you need to change how you manage cash flow. Here are three simple ways to prevent this problem in the future:

1. Shorten your payment terms
If you give clients 60 days to pay, you're carrying that cost for two full months. Switch to net 15 or net 30 if possible.

2. Set up clear invoicing systems
Send invoices as soon as work is done. Follow up regularly. Automate reminders if needed.

3. Keep a payroll buffer
Aim to keep one to two payroll cycles’ worth of cash in reserve. If that’s not realistic right now, use financing as a bridge—then build the buffer as you recover.

6. Don’t let pride cost you your business

A lot of owners wait too long to ask for help. They keep hoping the next client payment will save them.

But when you’re juggling bills, emotions run high. You want to stay in control. You don’t want to admit things are tight.

Here’s the truth: many businesses go through this. Cash flow is a common struggle, even when sales are strong.

There’s no shame in using tools like payroll receivables financing to cover the gap.

What matters is that your team gets paid, your clients stay happy, and your business keeps moving forward.

Need help covering payroll while waiting on client payments?
Contact us at Aurous Financial today to learn more about payroll receivables financing works.