MarketFinance unveiled Furlough Advance, based on its invoice finance service, offering an invoice cashflow solution to SMEs waiting for furlough funds from CJRS claims.
Despite HMRC’s CJRS claims portal opening last week, with the first claims being paid today (28 April), many SMEs are already in danger of collapsing before they get access to funding. UK SMEs are on the verge of paying out the second round of salaries to the eight million furloughed workers through the Coronavirus Job Retention Scheme (CJRS), and still, only the first few SMEs are on the verge of receiving funds.
Fintech business lender MarketFinance has stepped in to help SMEs bridge the gap between paying furloughed staff and waiting for their CJRS claim to be paid by HMRC. Having delivered invoice finance solutions since 2011, MarketFinance has pivoted their tried and tested model to provide funding against HMRC payroll rebates. Where invoice finance has up until now seen businesses advanced money owed to them in outstanding invoices, MarketFinance will now offer the same cash flow solution to SMEs looking to advance funds owed in CJRS claims. Businesses will initially be able to apply for funding facilities up to £150,000.
Anil Stocker, CEO at MarketFinance, commented: “With April’s payday looming, it is essential that the HMRC application process is smooth and that payments are made as soon as possible. Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and the survival of these businesses.”
“We’ve been advancing cash to businesses since 2011 against invoices with long payment terms. We have perfected this model over the years and, now, have quickly adapted our model to meet the current needs of business. These vulnerable businesses, already very short on cash in the bank, will face yet another pressure by having to pay salaries for furloughed employees and then reclaim it days later.”
Contact MarketFinance: https://marketfinance.com