Furlough Payments – Funding The Delay
The HMRC portal for furlough payments opened this week and saw 140,000 applications inside the first 24 hours.
With the delay between the launching of the furlough initiative and the application portal opening at HMRC many companies will already have paid two months salaries with no tangible income.
We also know that after registering with HMRC and then submitting your claim it could take a while to get the rebate through.
For many businesses, this is another drain on cash, even if it will be short term.
There is a solution.
Advance Payment Against HMRC Rebates
We have a lender who will finance the HMRC claim, meaning funds can be released immediately with that advance then being repaid by the HMRC rebate. For many companies with impending salaries and concerns over cash flow then this could be a godsend.
The scheme works like this;
- Maximum deal size of £150,000, equivalent to 80 employees receiving a furlough salary of £2500
- Average duration, 10 days
- Security needed, Personal guarantees will be mandatory and an all assets debenture will be required for exposures over £50,000, will also require a guarantor to have a minimum estimated net worth of £20,000
All in all, pretty good. This video gives a quick 60 second summary for you to share.
Companies will need to apply before submitting their rebate claim to HMRC. Bear in mind that for many businesses the rebate will be 3 months salary roll so the early injection of cash could be very well-timed.
For more details then get in touch.
Details of other Coronavirus finance support is available here.