Payroll Finance

This is a relatively new type of funding, available to companies with:

• A minimum of 5 employees
• Three or more years of trading history
• A projected annual turnover of £1M or greater.

Typically funding is provided to cover company payroll, NI and PAYE on a 60 day rolling basis, meaning, for example, that January payroll must be paid by the client by the end of March. A decision can normally be made within 48 hours of application, with funding available in 3 – 6 working days.

The key features of this funding are:

• It is unsecured, and no personal guarantees are required from directors/shareholders.
• Other funding solutions, such as factoring or overdraft, may be used alongside this funding.
• The funding is flexible and can be switched on or off as the client requires.
• Advances are competitively priced at 3% over Bank of England base rate, plus there is a monthly facility fee.

This type of finance can help companies that:

• Are close to the limit of existing facilities
• Cannot take advantage of other types of finance
• Need a cash injection to match their VAT cycle
• Need a quick decision
• Need flexible funding