Credit broker customers given option to spread the cost
With the main rate of corporation tax jumping from 19% to 25% earlier this quarter UK businesses are having to address the effect it’s having on cash flow. In response, Premium Credit is highlighting its broker led solution enabling businesses to spread the cost of annual tax bills over convenient monthly payments.
In recent research from Premium Credit, findings indicate cashflow in UK businesses is being affected by multiple causes. In addition to the recent rise in corporation tax, the data identifies that up to 28% of firms questioned say late payment problems have worsened in the past year. Around 27% of firms questioned said wage inflation will be an issue in the year ahead and that rising energy bills are adding to the pressure – around one in seven (14%) of SMEs questioned plan to cut running costs. As a result of these and other social / economic factors, UK businesses are recognising the need to protect cash flow more than ever.
Karl Leitelmayer, Sales Director, Premium Credit (Specialist Lending) comments: “Businesses are having to be resilient in difficult trading conditions and are looking for ways to help improve cash flow. Spreading the cost of corporation tax over monthly payments rather than having to be pay in one annual lump sum is a strong option to help alleviate this issue helping keep cash reserves available for use as additional working capital.”
Credit broker customers with a tax bill over £10,000, can apply for this credit facility. There are no application or arrangement fees for using the service, just a small transaction fee which is added to the invoice amount.
A simple application makes the approval process straight forward without the need to provide supporting income projections.