Making timely payroll tax payments is crucial to staying in business. A factoring company may actually assist in situations where there is a payroll tax delinquency. The most important part of working through a problem with the IRS is to respond their calls and letters, and then honor your commitments. As long as you show a willingness to cooperate you can avoid a tax lien on your business. Once a lien has been levied against your company it will require a written subordination in order for any factoring company to even consider funding.
Getting a payment schedule going and a subordination of a lien is something a factor is very familiar with, so utilize our experience. It is best to get setup with factoring before you reach a breakdown of tax payments. After negotiating with the IRS, you may have a payment schedule in place. The factor can be setup to send advances from invoices directly to the IRS. This insures that payments are being made in a timely fashion per the IRS agreement.
While your company is involved with any sort of commercial financing, the lender will be looking to see confirmation each month that payroll taxes are being paid. It is imperative if you use receivables as collateral, that the IRS does not come in and trump the security position of the lender with a lien.