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Payroll Finance - Facts
Helps to ease your cash flow by allowing you to borrow against the wages cost of your staff
- For established businesses – usually trading two years plus, profitable, with a minimum turnover of £100k and at least 5 employees.
- A flexible form of funding. Use it only when you need it – the minimum period is usually only 3 months. The funds can be used for any purpose.
- An unsecured facility with no directors guarantees or additional security required
- It doesn’t interfere with your existing funding relationships nor preclude you from seeking additional funding sources. It is a totally confidential facility.
- The lender normally grants a funding line equivalent to 2 months PAYE and National Insurance costs and this revolves much like an overdraft.
- Costs are based upon a monthly facility fee and interest is charged on the balance borrowed. Usually no exit fee once the minimum term has elapsed.