Nevertheless, nowadays there is an easy way to get unsecured funding for company payroll, PAYE and NI. There is the specialist lender who provides this service. His task is to give 60 day rolling credit on your gross monthly payroll, with a provision to allow for growth.
The lack of cash flow plays an important part in holding back the growth of small and medium sized businesses. The reason is not the absence of a steady and reliable income. This is because some customer's don't pay on time as they should and of course, the one payment that has to be made each week or month is the payroll.
Nevertheless, there are key profits of Payroll Financing for your business. They are:
1. No security required by company directors
2. The funding appears as a normal trade creditor on a company's P&L, improving its credit rating
3. It can be used alongside other traditional financial solutions including factoring, invoice discounting and overdrafts
4. It does not influence on an organization's secured funding arrangements
5. There's no set up fee
6. A flat rate on-going monthly facility fee
7. An interest rate of base plus 3% on the outstanding balance
However, there are some answers that can find out whether you will perhaps qualify for Payroll Finance Funding. You have to answer such questions:
1. Do you have a trading history of 1 or more years?
2. Is your annual turnover more than £100,000?
3. Do you have more than 5 employees?
Clients who have already gained assistance of payroll financing:
This is a large printing firm that has been accepted as clients within 4 days from the application. And they were offered a credit facility of £200,000 per month on 60 days revolving credit, base plus 3% on the outstanding balance and a monthly facility fee of £2,500.
The next is a plastics manufacturing who applied for a facility of £50,000 per month. But they were accepted on 60 day credit terms, base plus 3% interest charge on the outstanding balance and a monthly facility fee of £635.
The last is a firm of architects that was looking for funding of £30,000 per month, they were processed within 3 days and accepted on 60 day terms, base plus 3% interest on the outstanding balance and a monthly facility fee of £400 per month.