4 Simple Steps to Obtain the ERTC Advance
The Employee Retention Tax Credit (ERTC) is a refundable payroll tax credit designed to incentivize businesses to maintain their employees on the payroll, especially during challenging economic times. The ERTC Advanced Loan program is introduced to aid businesses that might be facing cash flow challenges in utilizing this tax credit effectively. In this piece, we will explore the advantages of opting for an ERTC advanced loan for your business and provide a detailed step-by-step walkthrough to kickstart the application process.
To start, let's briefly summarize the essence of the ERTC and its operational dynamics.
The ERTC was first introduced in 2020 as a part of the CARES Act and was later extended into 2021. This credit offers eligible businesses the chance to claim a tax credit that can amount to as much as $5,000 per employee for 2020 wages and up to $7,000 per employee for 2021 wages. To qualify for this credit, businesses must have experienced a significant decline in their gross receipts or have encountered full or partial suspension of their operations due to COVID-19-related restrictions.
Once you have filed the credit application through an accounting firm or an ERTC service provider, there are four crucial steps to obtaining the ERTC advance.
Here are the steps simplified:
Provide your business information to the loan provider for better understanding of your employee retention credit request.
Complete and submit your online application along with required qualifying documentation.
Consult with a funding specialist for guidance and advice.
Await the approval decision..
Let's delve into the advantages of acquiring an ERTC advanced loan.
When businesses grapple with cash flow constraints, leveraging the ERTC can be challenging due to delays in processing and disbursement. However, the ERTC Advanced Loan presents a solution, offering immediate financial support for retaining employees and covering expenses.
A significant advantage of the ERTC advanced loan is its function as a prepayment of the ERTC. This enables businesses to allocate funds flexibly, enhancing cash flow for various initiatives.
In contrast to traditional loans, collateral is not required beyond the ERTC credit rights. This is especially beneficial for small and emerging businesses that may not meet standard bank loan criteria.
In summary, the value of securing an ERTC advanced loan goes beyond providing a cash infusion. It empowers businesses to utilize ERTC funds upfront, freeing up cash flow for strategic expansion.