The latest from Premium Credit for you;
While the annual rate of inflation has eased in recent months, some forecasters are warning inflation could more than double by the end of the year, should global energy supply disruption continue to push prices up. For regulated firms already absorbing rising costs, that kind of uncertainty makes budgeting all the more difficult as their FCA invoices land.
For FCA-regulated firms, few costs are more certain than their annual regulatory fee. This year’s invoices, covering the final step in a multi-year staged increase to minimum fees, are landing between July and September – before businesses can even factor in the possibility of a renewed inflation shock reshaping their cost base later in the year.
Premium Credit’s FCA fee funding facility allows regulated firms to convert their annual invoice into ten fixed monthly instalments rather than a single lump-sum payment, in order to regulate cash flow and protect working capital so firms have more flexibility to respond if the economic picture changes.
Nigel Stewart, Sales Director – Specialist Finance at Premium Credit, said: “Nobody knows yet whether this inflation spike will materialise, but businesses shouldn’t wait before they act on the costs they can control. Spreading their fixed FCA fee into monthly instalments, rather than tying capital up in a single payment, gives firms a buffer if the wider cost picture does change later in the year.
“This can be particularly true for smaller regulated firms. One annual, lump-sum payment can really hurt cash flow. By smoothing it out, you take some of the pressure off while still meeting your payment obligations.”
With invoicing already under way, firms that want to spread the cost need to act before their payment deadline falls due. Premium Credit is encouraging regulated firms to explore their options in good time, to avoid late payment charges and preserve cash reserves in what is shaping up to be an uncertain second half of the year.
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