| Payroll Finance |
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Payroll finance offers an innovative approach to business cash flow funding that allows companies to grow by releasing capital normally tied up in the company payroll. The lender provides unsecured funding equivalent to the payroll, PAYE and N.I. costs typically on a 60 days revolving credit facility. The facility is designed to work alongside traditional business lending facilities, including bank overdraft and invoice finance agreements. It is recognised that staff are a key asset for most companies and payroll finance lenders will accept applications from companies that have at least five employees, have submitted at least one year’s accounts with Companies House and have a projected turnover of more than £100,000. The service enables all eligible employees and HMRC to be paid directly by the lender upon approval by the client of their monthly payroll. Key benefits of the service include compliance with prevailing legislation and prompt payment of PAYE and NI obligations. Administrative compliance is now becoming a critical activity and a headache for many small companies. The lender will charge a one off set-up fee and an on-going monthly facility fee with an interest rate (to be negotiated) above base rate whenever the payroll is funded. A minimum commitment to the service is normally 6 months. Typically any new business application approved before the 15th of the month will allow the payroll lender to fund in the same calendar month. The major benefit of the service in the current climate is that it releases necessary working capital in addition to existing facilities provided by your bankers as it is a totally separate facility which also means there is no impact on the current security position of your bankers, which can often be an issue. The Directors at Open 4 Business Finance Ltd have over 50 years experience within the banking industry and as such we have a clear understanding of client needs in different industries, matching needs with financial services available. This process can often lead to significant time savings and more importantly cost savings for the client. Open 4 Business Finance Ltd has access to all the major UK payroll lenders and as such we are able to negotiate the very best deals in the marketplace on your behalf, leaving you to concentrate on managing a successful business. |