Wage finance

Wage finance is a relatively new addition to the finance world. One of the biggest costs for any business is their wage bill. Staff should be an asset and certainly for all other assets there are specialist funding solutions that can spread the cost and free up much needed capital for growth and expansion. Wage finance is simple a way of treating your staff as any other asset and receiving funding to pay salaries. That way you are able to use the capital in your business elsewhere.

Wage finance is typically unsecured in terms of company security. It is available to creditworthy businesses in all sectors and facilities are offered for up to twice the monthly wage bill. So if your wage bill is £80,000 wage finance could offer you up to £160,000 over the two months. Wage finance is not a long term option as it will only pay salaries for two months but it can offer a viable alternative to bridging finance or short-term loan.

Wage finance operates much like a bank overdraft and you simple draw down the funds you require. Repayment must be made within an agreed time from that draw down, usually within three months. It is also completely confidential so staff and suppliers will not know about the funding.

Ideal for:
Businesses that are heading into a growth phase and wish to fund it internally rather than sourcing external loans could benefit from wage finance. Also those businesses that experience cash flow peaks and troughs could find wage finance an ideal solution.

Security requirements:
A small personal guarantee will normally be required.

Advantages:

Disadvantages

Key UK providers: