- 23 Apr
Get Access To Furlough Payments Now
MarketFinance have launched an innovative new scheme to enable SMEs to access furlough payments immediately.
"Furlough" is the term applied to employees that would have been laid off by their employers, due to the impact of the virus outbreak, but are retained by their employer in return for a Government grant for the equivalent to 80% of their usual monthly wage cost (up to a maximum of £2,500 per month). The temporary job retention scheme is initially available for the next 4 months from the 1st March 2020, but could be extended further.
The scheme aims to retain jobs, for employees that would have othewise become unemployed, whilst UK businesses struggle through these difficult times.
Furlough Financing Launched By MarketFinance
Furlough financing gives SMEs prepayments against the furlough payments that they are due, to speed up payments due from the job retention scheme.
Under the Coronavirus Job Retention Scheme (CJRS), small businesses have applied for grants that may be received Monday at the earliest. However, payment of wages will be due on Friday for many businesses. This is creating a cash flow gap between having to pay out the funds, and receiving the payments from the Government. Many companies will find themselves with an invoice, outstanding to the Government that will be paid in 6 - 10 days by HMRC.
MarketFinance have extended their selective invoice financing platform to accept these furlough payment invoices to HMRC, such that prepayments can be made available against them, for amounts currently up to £150K (this may be increased in the future).
This option gives cash strapped businesses a way to access at least part of the money that they are due immediately. This financing scheme is currently available monthly, for payments that will be made over the next 3 months. However, it may be extended further if the Government extends the job retention scheme.
It is another brilliant example of how UK businesses are adapting to these difficulties and innovating in order to help UK businesses survive this crisis.
Related information: Coronavirus support for UK companies.