The business needed recurring tax and cash-flow funding to bridge the timing gap between payroll, client payment terms and large statutory liabilities. Across seven separate facilities, we arranged £3,371,432 in total. Seven facilities completed, totalling £3,371,432. The business has met its tax obligations while keeping its working capital where it belongs: paying its people and serving its clients.
Staffing businesses pay their people before their clients pay them. The gap between the two is the business model, not a warning sign.
This recruitment business needed a lender that saw it that way.
01
The requirement
The business needed recurring tax and cash-flow funding to bridge the timing gap between payroll, client payment terms and large statutory liabilities.
Across seven separate facilities, we arranged £3,371,432 in total.
02
The challenge
In recruitment, workers are paid before clients settle their invoices. Add a large tax liability and a profitable business can still be short of cash at exactly the wrong point in the month.
Paying each liability from trading cash would have taken liquidity out of the business just when payroll needed it.
03
The structure
We separated the tax liability from normal operating cash flow and arranged funding that let the business meet each obligation while keeping liquidity available for trading.
As each new liability came round, we went back to the market for the next facility.
04
The result
Seven facilities completed, totalling £3,371,432.
The business has met its tax obligations while keeping its working capital where it belongs: paying its people and serving its clients.
What our clients say
I contacted them to apply for a VAT funding loan. Simon responded within half an hour of my request and was able to confirm funding within a 24 hour period. It was the first time I have had to apply for funding owing to a short-term cash flow problem, and he made the journey so easy. Kind and highly efficient: I would highly recommend them for a fast, professional service.
Company directorVAT fundingGoogle review
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How can a staffing business fund the gap between payroll and payment?
Common options include invoice finance and working capital facilities sized to the payroll cycle. The right lender sees that gap as the business model it is. See recruitment finance.
Can a business borrow to pay a VAT or tax bill?
Often, yes. VAT, corporation tax and other HMRC liabilities can be spread with a dedicated tax funding facility, so the bill is paid on time without draining working capital. Subject to status. See HMRC and tax funding.
Is this a real transaction?
Yes. Every case study on this site is a transaction we arranged and saw through to completion. Client details are anonymised, and we only publish what we can verify: we never invent figures, rates or outcomes.
Do you lend the money yourselves?
No. Smart Funding Solutions is a credit broker, not a lender. We search a panel of 300+ lenders, present your case to the ones whose criteria fit, and manage the application through to completion. The lender makes the final decision and all finance is subject to status.
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Your business
Could this structure work for your business?
Every case is assessed on its own merits. These pages explain the finance used here and what lenders look at.
Client details are anonymised. Every case is different and past results don't guarantee future outcomes: lenders set their own criteria and all finance is subject to status.
£80,000
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