As the regulator sends out its invoices, specialist lender Premium Credit says it expects to see an increase in demand from firms looking to preserve cash flow in the current climate.

Under the finance facility it offers, firms typically spread repayments over 10 months.

Recent research by the lender found that one in three firms 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.

Premium Credit chief commercial officer for specialist lending Roger Brown says: “Our payment  solutions are designed to give firms greater control over cashflow, 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.”