Optimise your cash flow by spreading the cost of FCA fees
As the FCA sends out its invoices to regulated firms requesting payment of annual fees, Premium Credit is offering these businesses a finance facility to spread the cost over convenient monthly repayments rather than having to pay in one lump sum.
The specialist lender, having provided a finance option to regulated businesses for over 15 years, expects increased demand as firms look to preserve cash flow as the economic uncertainty created by Brexit and Covid-19 continues. Paying the cost of fees via an instalment facility allows firms to spend precious cash reserves in other business critical areas with repayments typically made over 10 months.
Effective use of finance is a popular option with many businesses, including those regulated by the FCA. This route can help meet everyday expenses due to more cash flow being available. Recent research* from Premium Credit shows SME cash balances are being squeezed significantly – around one in three firms (33%) say cash reserves have fallen during the pandemic, while 7% say their firm has no cash reserves. Just 13% say they have seen a rise in cash reserves.
In 2020, at the height of the Covid lockdown, Premium Credit continued to make credit available, in the process helping more than 2,300 regulated firms spread the cost of their FCA/FSCS fees and levies.
Roger Brown, Premium Credit’s Chief Commercial Officer for Specialist Lending, commented: “Our payment solutions are designed to give firms greater control over cash-flow, allowing their cash reserves to work more effectively and to better meet their current business needs. It also helps them to accommodate the increased cost of FCA fees being experienced by many this year too.”
Mr. Brown added: “Working with Premium Credit is a strong option for those businesses looking for wider payment options. It’s a simple digital application process. With years of significant investment in technology we ensure the whole customer journey is a smooth, seamless process – we as the lender undertake the bulk of the administration.”
Premium Credit advises that it’s important to act in a timely way, so firms have the opportunity to consider the best fee payment option and avoid a financial penalty for any late response.
To find out more about spreading the cost of FCA Fees from Premium Credit CLICK HERE
About Premium Credit
We are the leading provider of premium finance in the UK and Ireland, and the only company endorsed by BIBA.
We are authorised and regulated by the Financial Conduct Authority, and work with over 3,000 producers of all sizes. We serve over 2.1 million customers, process 24 million direct debits and receive advances of £3.5 billion.
For over 30 years, we’ve led the market through thought leadership, innovation and technology and have helped our partners offer finance compliantly to their customers through face-to-face, telephony and online channels.
We continue to invest to ensure we provide a quality service and support that helps you grow your business and commission. From the delivery of a seamless customer journey, which includes real time decisioning for financing and 24/7 account servicing, to consultation that improves the offer of finance to customers, we are committed to growing the premium finance market.
Our Specialist Lending division also provides finance to pay other annual costs, such as professional fees, membership subscriptions, commercial service charges, golf clubs and school fees.