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HOW FINANCING PAYROLL WORKS
In the same way that suppliers free up cash by giving credit on
the purchase of materials and supplies, Payroll Finance frees up
cash by providing credit for the payment of wages and salaries.
It can even be used for payments to sub contractors. It does
this by paying wages and salaries - including the PAYE and NI -
for up to nine weeks, thereby allowing more money to be retained
as cash flow to help fund working capital. As a rough guide, a
business with a gross monthly wages and salary bill of £50,000
could apply for a facility of up to £100,000.
Payroll Finance is unsecured does not require directors personal
guarantees and is completely confidential, and can therefore be
used in addition to businesses other existing borrowing
facilities.
It is also more flexible than many other forms of finance
because the cash it frees up can be used for virtually any
purpose - for example, in helping to finance growth, covering
short-term excesses on other borrowing facilities, bridging the
receipt of cash from other borrowings that are not yet in place,
financing the cost of new employees until they can pay their
way, or simply as extra working capital.
There is an initial 13-week period during which customers must
make use of the facility, but thereafter its use is entirely at
the client's discretion. |
