Under the Coronavirus Job Retention Scheme (CJRS) businesses must still pay staff wages upfront before receiving funds from HMRC.
We are now working with funders offering to advance the funds owed to businesses by HMRC. The enhancement enables businesses to bridge the cash flow gap between applying to HMRC for their CJRS rebate and receiving the funds back into their bank accounts.
What do businesses need to know?
- An application must be made before submitting CJRS claim to HMRC
- The maximum deal size is £150,000 – equivalent to 80 employees receiving a furlough salary of £2500
- The average expected duration is 10 days
- Personal guarantees will be mandatory and an all assets debenture will be required for exposures over £50,000
- A guarantor is required with a minimum estimated net worth of £20,000
- This funding opportunity is only available for B2B businesses
What do we need from you?
- Financial statements
- 3months bank statements
- “Full Payment Submissions” submitted to HMRC in the last 3 months (including at least one prior to 19-Mar-2020). These must include the following information:
- Employer name
- Employee information (name, surname)
- Pay and deductions (including amounts, period covered and the payment date)
How does it work?
- The business will need to ensure the HMRC rebate is paid into their client trust account which will be issued to them once approved for the facility
- Only the total amount to be paid to furlough employees is to be considered and should not include pension and national insurance contributions
- Funding will be sought to advance up to 75-80% of rebate. The advance rate will be set based on the risk profile of the business
- HMRC will pay the lender the complete balance directly who will pass on any further funds outstanding to the business minus any fees
If you have any questions, please don’t hesitate to get in touch with our team on hello@reachcf.co.uk or 0800 993 0193