Business Bank announces four new lenders for CBILS
14th April 2020Mini-bond provider Blackmore Bond has fallen into administration.
24th April 2020MarketFinance can advance money for furloughed employees
At the end of this week, tens of thousands of small businesses will have to pay furloughed employees, despite money from HMRC not expected to arrive until some days later.
The likely cash crunch puts 1m+ furloughed employees at risk of either not being paid, or facing significant delays to their salaries while their employer waits for cash to arrive.
By some estimates the furlough cash owed to small businesses by HMRC is already well over £1bn and could be as high as £20bn depending on how many SMEs register each day.
Fintech MarketFinance has announced that it is repurposing its invoice-financing engine to solve the problem. The amounts will be less than £150,000 and will go direct to the employee. Marketfinance will charge between 1-3% interest split between them and the lender.
This is a great example of how Fintech companies are reacting quickly to problems caused by the pandemic. However, it will be difficult to make money if the delays are very short!