Restructuring a business — whether that means reducing headcount, closing a division, or consolidating to a single site — creates a cluster of costs that all fall due at roughly the same time. Statutory redundancy pay, notice-period salaries, settlement agreements, lease surrender costs and recruitment for the leaner structure can combine to a significant one-off outflow.
Why restructuring costs arrive in a lump
Employment law sets clear timescales. Statutory redundancy pay must be calculated and paid at the point of dismissal. Notice periods run concurrently with consultation in many cases, meaning salary continues even while you are still negotiating terms. If you are also exiting a lease or closing a site, landlord deposits and dilapidation costs may fall due simultaneously.
How a Credicorp facility fits in
A lump-sum Credicorp facility can cover the one-off restructuring costs, allowing your company to meet all legal obligations on time and in full. The facility is then repaid from the lower cost-base the restructure creates — in effect, future savings fund the cost of getting there. A simple illustrative model: if the restructure saves £8,000 per month in staff costs, a six-month facility can be repaid before the cumulative saving exceeds the cost (illustrative, not a quote).
What to ensure before drawing
- Your solicitor or HR adviser has confirmed the redundancy process is legally sound.
- You have a clear figure for the total liability including notice pay and any enhanced terms.
- The post-restructure trading model generates enough income to service repayments.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Using finance to fund a new hire or onboarding costs, Using finance to cover payroll during a cashflow gap.