The Payroll Dilemma in UK Startups
Imagine this: you’ve just secured a handful of new clients, your team is excited, and the office buzzes with energy. Then the reality check hits—you need to meet payroll in two weeks, but your bank balance says otherwise.
Cashflow tight. Salaries due. Stress spikes.
Traditional bank loans can drag you into debt. Overdrafts bite you with interest. Earned wage access (EWA) platforms like Instant promise to ease that pinch by letting staff draw down pay early. It sounds neat:
- No heavy admin.
- Instant morale boost.
- Better staff retention.
But it’s not a silver bullet. Under the hood, many EWA services still charge fees, require integration work and don’t solve the core issue—you need more lasting equity funding for payroll and growth.
Earned Wage Access: A Short-Term Fix
At first glance, EWA seems magical. You give your employees a taste of their salary whenever they ask. Instant touts these big wins:
- 85% of workers say same-day pay improves loyalty.
- 37% report better job satisfaction.
- 86% would apply to your roles just for quicker pay.
Clear benefits. Instant deliver on simplicity: digital tip payouts, virtual pay cards, budgeting tools. And it’s free for employees—no sneaky charges. Yet, even a no-fee model doesn’t create lasting runway. You’re still borrowing against forecasts. Better? Yes. Permanent solution? No.
Relying on EWA feels a bit like patching a leaky roof with duct tape. It works… until the next downpour.
Why Commission-Free SEIS/EIS Equity Funding is Different
Equity funding flips the script. Instead of a loan, you bring investors on board for a slice of future success. With the UK Government’s SEIS and EIS programmes, that slice comes with serious tax perks. And Oriel IPO makes it commission-free.
Understanding SEIS and EIS
SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) empower startups to raise money by offering investors tax relief:
- Up to 50% income tax relief on SEIS investments.
- 30% income tax relief on EIS contributions.
- Capital Gains Tax exemption on growth.
- Loss relief if your venture doesn’t pan out.
Those incentives mean investors are more willing to back your payroll and expansion. You maintain control, avoid debt ceilings, and share risk.
Oriel IPO’s Commission-Free Marketplace
Most crowdfunding platforms take a slice of every deal. Seedrs, Crowdcube—they’re well known, but fees can reach 7% or more on funds raised. Oriel IPO challenges that:
- Commission-free funding: 0% charge on successful raises.
- Curated deals: Only quality SEIS/EIS-eligible ventures.
- Educational resources: Guides, webinars, templates.
- Subscription-based tiers: Flexible access to premium tools.
No surprise fees. No hidden charges. You connect directly with angel investors who see value in equity, not quick repayments. And your cash stays fully in your bank—ready for payroll, rent and R&D.
Explore equity funding options
Real-World Impact: How Equity Funding Powers Payroll
Let’s unpack a hypothetical. Meet GreenGear, a UK SME making eco-friendly backpacks. They needed £100,000 to pay 10 staff for three months while launching a new line. A bank loan asked for 8% interest and personal guarantees. Earned wage access solutions gave only short-term relief and an admin headache.
Instead, GreenGear listed on Oriel IPO:
- They hit their £100k target in six weeks.
- No commission fees wiped out their raise.
- Investors got tax relief, so they were happy.
- Payroll was secure while product launch soared.
That’s equity funding for payroll in action. A straightforward, long-term answer to staff costs.
Overcoming Obstacles: Navigating Regulations and Due Diligence
SEIS/EIS compliance can seem labyrinthine:
- Rules on asset values.
- Timeframes for investment.
- Share structure requirements.
Here’s where Oriel IPO shines. Their platform offers:
- Step-by-step checklists.
- Legal templates co-created with experts.
- Guidance on HMRC filings.
- Community forums to swap stories.
You’re not alone in the maze. You get clarity, not confusion.
Comparing the Costs: EWA vs Equity Funding
Let’s weigh two paths against equity funding for payroll:
Earned Wage Access (EWA):
– Pro: Instant morale boost.
– Pro: Low setup effort.
– Con: Still a pay advance.
– Con: Potential fees creep in.
– Con: Doesn’t extend runway.
Commission-Free SEIS/EIS Equity Funding:
– Pro: Cash injection.
– Pro: Zero commission on raises.
– Pro: Tax relief for investors.
– Con: Takes a few weeks to close.
– Con: Requires due diligence.
If your cash crunch is fleeting, EWA has its place. But if you aim for stability, growth and stronger investor ties, equity funding wins hands-down.
Practical Steps to Secure SEIS/EIS Equity Funding
- Check eligibility.
- Prepare a concise pitch deck—focus on problem, solution, team.
- List on Oriel IPO’s commission-free marketplace.
- Engage with investors: host Q&As, demos.
- Complete legal paperwork via Oriel IPO’s resources.
- Receive funds. Fund payroll. Fuel growth.
Simple? Almost. You’ll still need effort—no one said building a business was effortless. But you will ditch debt-stained options for a cleaner balance sheet.
Beyond Payroll: Equity Funding as a Growth Engine
Sure, your first target might be salaries. But once investors are on board, you can:
- Expand offices.
- Hire specialist talent.
- Ramp up marketing.
- Invest in R&D.
It’s a mindset shift: equipping your startup for the long haul, not just the next pay run.
Sustainable Payroll Solutions for Modern Startups
Startups thrive on momentum. A payroll glitch can scare staff, drain energy and dent momentum. Commission-free SEIS/EIS equity funding is more than a band-aid. It’s a foundation:
- Alignment. Investors share the risk and reward.
- Resilience. You’re not juggling repayments.
- Community. Oriel IPO’s curated network brings advice and contacts.
Think of it as planting seeds today for a forest tomorrow.
Conclusion: Choose Sustainable Growth
You could patch payroll with EWA, overdrafts or quick loans. Or you can fuel your startup with equity funding for payroll that lasts. With Oriel IPO’s commission-free SEIS/EIS marketplace, you get more than money—you get partnership, clarity and zero surprises on fees.
Ready to rethink how you pay your people? Step away from the quick fix and embrace a model built for growth.
