New starts in the UK temp construction sector can find it incredibly difficult to obtain adequate funding as their invoice payments are usually made ìunder deductionî meaning that 18% of the invoice value is not paid. Instead, a certificate is issued to equate to this 18%, for tax, to be claimed back at the time of monthly tax payment or even the end of the tax year depending upon the CIS (Construction Industry Scheme) certificate held.
New companies and small companies invoicing in their own names cannot acquire CIS5 certification, which to date, unless they invoiced through others, had been the only thing that would allow them to get reasonably high levels of invoice funding. Not only is funding restricted but they have an administration burden that their larger CIS5 holding competitors do not. There is no level playing field for the smaller players.
The consequence is that most new and small temp businesses simply steer clear of the Construction sector, which of course delights the major players as they remain free from competition. However, it frustrates the entrepreneurs so plentiful in recruitment, who do not wish to work as sales agents of others but would love to get into the market and could service it really well if only they could obtain adequate funding.
Cash Simply has always helped companies in the Construction sector by being prepared to provide 100% funding to CIS5 holders invoicing in their own name and 100% funding to others - but not with invoicing in their own name. At the same time, uniquely however, it has provided a mechanism whereby those without a CIS5 today can qualify for a CIS5 as they grow, giving them more access to funding. and business freedom.
Cash Simply thought it could do better so it has worked for many months now to put in place for CIS6 holders, the funding benefits only enjoyed to date by CIS5 holders.
After many months and negotiations with new financiers, from the 10th January 2005, Cash Simply, has launched a new contract which, uniquely, provides 100% funding for CIS6 holders who are invoicing in their own name.
Chief Executive Tom Atkinson says ìIt is a delight to work with new and young companies and to help them grow. This breakthrough in which, uniquely, we are able to provide 100% invoice funding to CIS6 holders, should take pressure from many who are struggling to meet the cash flow problems the CIS causes small businesses and new start ups and allow them to compete with the bigger players on a level playing field.î
Creating a level playing field in the construction sector
New starts in the UK temp construction sector can find it incredibly difficult to obtain adequate funding as their invoice payments are usually made ìunder deductionî meaning that 18% of the invoice value is not paid
