Funding model
An agreed funding structure with a defined initial period.
This page sets out how the funding structure is intended to work. Every element of it is agreed individually and documented before an arrangement begins.
- Assessment
- Limit
- Initial period
- Premium
- Reconciliation
In short
Agreed first, funded second, reconciled throughout.
The structure is deliberately sequential: assessment, then an agreed limit, then a defined initial period, then the applicable premium in accordance with agreed terms, with reconciliation running alongside.
Where agreed, the applicable premium is not charged during the initial six-month funding period.
Following the initial period, the applicable premium applies in accordance with the agreed commercial terms.
Subject to commercial assessment, eligibility, agreed funding limits, contractual documentation and individual commercial terms.
Funding availability is not guaranteed. All arrangements are subject to commercial assessment, eligibility, agreed limits, contractual documentation and individual terms.
The initial period
Month 01 through month 06, and what follows.
The timeline below is the shape of the initial agreed period. The wording beneath it is the operative statement and takes precedence over the diagram.
- Month 01 Arrangement live
- Month 02 Funded activity
- Month 03 Administration
- Month 04 Records maintained
- Month 05 Position reviewed
- Month 06 Initial period ends
- After month 06 Applicable premium applies
During Where agreed, the applicable premium is not charged during the initial six-month funding period.
After Following the initial period, the applicable premium applies in accordance with the agreed commercial terms.
Conditions Subject to commercial assessment, eligibility, agreed funding limits, contractual documentation and individual commercial terms.
The structure in full
Seven stages of the funding model.
- 01
Initial assessment
Every arrangement begins with a commercial assessment. The company, the proposed workforce expenditure, the payment cycle, the contractual structure and the supporting information are reviewed together, so that what is being proposed is understood before anything is agreed.
This is a commercial assessment of the arrangement. It is not described as regulated underwriting or a regulated credit assessment, and no such status is claimed.
- 02
Agreed funding limit
Where an arrangement proceeds, a funding limit is proposed and agreed. The limit defines the ceiling of the arrangement and sits alongside the definition of which costs qualify for support.
Limits are set individually. There is no standard limit, no published limit and no limit that applies automatically to any category of business.
- 03
Initial six-month period
Subject to approval and agreed commercial terms, qualifying workforce-related costs may be funded during an initial period of up to six months.
Where agreed, the applicable premium is not charged during the initial six-month funding period.
- 04
Applicable premium
The applicable premium is a commercial charge agreed as part of the arrangement. Its level, basis and timing are set out in the commercial terms for that arrangement rather than published as a standard rate.
No fixed premium applies to all clients, and no premium figure, rate or percentage is quoted on this website.
- 05
Post-initial period
Following the initial six-month period, the applicable premium is charged in accordance with the agreed commercial terms and qualifying costs funded under the arrangement.
- 06
Reconciliation
Funded costs, payments, administrative charges and the applicable premium are reviewed so that the commercial position for a period is clear. Reconciliation is part of the arrangement rather than an occasional exercise.
- 07
Ongoing arrangement
Where the relationship continues, the arrangement carries on under its agreed terms with ongoing coordination across funding, administration and documentation. Any change to limits, scope or charges is agreed between the parties in the same documented way.
The exact funding limits, payment structure, charges and commercial terms are agreed individually.
Language
Why the wording on this page is careful.
Funding language carries regulatory weight. The phrasing here has been kept deliberately precise, and it should not be paraphrased in marketing material.
Wording used
- “Subject to approval and agreed commercial terms”
- “Qualifying workforce-related costs”
- “An initial period of up to six months”
- “The applicable premium is not charged during the initial six-month funding period”
- “In accordance with the agreed commercial terms”
Wording not used
- “Six months free”
- “Interest free” or “0% finance”
- “Free funding” or “free credit”
- “Guaranteed funding” or “instant approval”
- “No checks” or “no commercial assessment”
Next step
Discuss how the structure would apply to your business.
Limits, charges and the treatment of the applicable premium are agreed individually. The starting point is a conversation about your workforce expenditure and payment cycle.