Wages and PAYE Finance
One of our finance providers recently launched a new service that will free up cash for your business by paying your employee's wages and your PAYE commitment, on your behalf, and allowing you up to 9 weeks rolling credit.
There are no requirements for personal guarantees and it does not affect any existing factoring arrangements which is a major innovation and benefit.
In the same way as your suppliers free up cash in your business by giving you credit on your supplies, this service frees up cash by giving you credit on your wages commitments, hence improving your cash flow.
The service works in a very simplistic way:
- Inform the provider (weekly or monthly) of the payment details for each employee (net pay, tax, employers and employee's national insurances or NI).
- The provider pays the net wage into each of your employee's bank accounts by electronic BACS transfer.
- You pay the provider for the service 63 days later (by direct debit) and the provider will also pay, on your behalf, the inland revenue as and when this falls due.
- Everything is confidential so your employees need not know of the providers involvement.
- Costs - one-off set up fee paid at the commencement of the facility and an administration fee (this is a percentage of the average outstanding balance owed at that month) and a service fee (a percentage over bank lending rate) both of which are charged on a monthly basis.
- No requirement for directors to give personal guarantees.
- Facility is additional to any existing loans, overdrafts and factoring/invoice discounting arrangements.
- No charge is required over the assets of your business.
- Contract is for a minimum of 13 weeks after which you are free to dip into and out of the service as your cash flow dictates.
- Even if you choose to leave the scheme (28 days notice required and subject to all direct debits having been met) you can rejoin at any time without any set-up fees.
To find out more about this unique, additional new service contact us:
