As the Financial Conduct Authority (FCA) sends out its invoices to regulated firms requesting payment of annual fees, Premium Credit has offered businesses a finance facility to spread the cost over monthly repayments rather than one lump sum.
The specialist lender expects increased demand as firms look to preserve cashflow as the economic uncertainty created by Brexit and COVID-19 continues.
Recent research from Premium Credit shows small to medium enterprise (SME) cash balances are falling – around one in three firms (33%) say cash reserves have dropped during the pandemic, while 7% say their firm has no cash reserves and 13% say they have seen a rise in cash reserves.
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In 2020, at the height of the COVID-19 lockdown, Premium Credit continued to make credit available, and reported helping more than 2,300 regulated firms spread the cost of their FCA or Financial Services Compensation Scheme (FSCS) fees and levies.
Roger Brown, chief commercial officer for specialist lending at Premium Credit, said: “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.
“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.”
