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As of the end of June, approximately 892,673 taxpayers were grappling with the complexities of Time to Pay (TTP) arrangements with HMRC. For small business owners, managing these obligations can be an intricate and challenging task.
In this case study, we proudly introduce one of our clients who, with the help of our invoice finance facility, successfully navigated their HMRC arrears and unlocked a wealth of other benefits.
Introducing Our Client
Our most recent client, established in October 2020, is a dynamic player in the automotive industry, specialising in on-site and workshop solutions for vehicles weighing up to 3.5 tonnes.
With a commendable spirit, they have achieved an impressive annual turnover of £2,000,000. Their diverse portfolio of services encompasses everything from MOT testing, servicing, repairs, tire maintenance and comprehensive routine management packages.
Guiding this business is a seasoned veteran with over 35 years of experience in the motor industry, who has garnered a stellar reputation for their profound expertise and unwavering commitment to service excellence.
Our client found themselves facing a pressing financial challenge with HMRC arrears totalling approximately £400,000. Furthermore, the process of waiting for customer payments, which typically took 30 to 45 days, severely strained their cash flow.
The financial situation threatened not only their ability to meet their HMRC obligations but also their capacity to pay suppliers and employee wages. Additionally, it hindered their growth prospects, making it difficult to onboard new clients using organic funding.
Upon learning of our client’s struggle, we recognised the potential for support. To alleviate their financial burden, we facilitated a bespoke funding solution. We have established a funding facility of £300,000 for our client. Notably, this facility was provided without the need for debtor protection, further demonstrating our commitment to flexible and comprehensive financial solutions.
The implementation of this customised funding facility has provided a myriad of positive benefits for our client:
- New Client Acquisition: With the newfound financial flexibility, our client is now able to take on new clients, expanding their business in a way that was previously unattainable.
- HMRC Obligation Fulfilment: The facility has empowered our client to meet their agreement with HMRC, ensuring they can effectively pay off their arrears.
- Timely Payment to Suppliers: Our client can now meet their financial commitments to suppliers promptly. This has strengthened relationships with their suppliers and enhanced their standing in the industry.
- Staff Wages: The ability to consistently meet employee wage obligations on time has alleviated the financial stress and uncertainty previously experienced.
- Investment in New Equipment: The funding facility has enabled our client to invest in equipment and technology upgrades, enhancing their operational efficiency and service quality.
These outcomes collectively represent a transformation in our clients’ business, making them more competitive, resilient, and ready for future growth.
If your small business is grappling with the challenges of HMRC arrears and requires immediate support, don’t hesitate to contact us today! We are committed to supporting your business with a tailored facility within a matter of days, bringing relief and financial stability to your business.