Are you still waiting for the IRS to process your Employee Retention Credit refund? You're not alone. With processing delays stretching into 2025 and backlogs continuing to grow, many business owners are exploring a faster alternative: ERC buyouts.
What is an ERC Buyout?
An ERC buyout lets you sell your pending Employee Retention Credit claim for immediate cash instead of waiting months or years for the IRS to send your refund. Think of it as converting your future tax credit into working capital you can use right now.
This isn't a loan, it's an asset sale. You're not borrowing money against your ERC claim. You're actually selling a portion of it to a funding company that pays you upfront and then waits for the IRS to process the refund.
How ERC Buyout Work?
Step 1: Verify Your Eligibility:
Your business must have a filed ERC claim with the IRS. According to the official IRS guidelines, you qualified if your business experienced either a full or partial suspension due to COVID-19 government orders, or had a significant decline in gross receipts during 2020-2021.
Step 2: Submit Documentation:
You’ll need your Forms 941X (amended returns), business tax returns from 2019-2022, payroll records, and proof of your ERC calculation.
Step 3: Receive Your Offer:
Funding companies typically offer 80-90% of your ERC claim value. The remaining 10-20% (called the holdback) goes directly to you when the IRS eventually processes your refund.
Step 4: Get Paid:
Once you accept the offer, funds are typically wired to your business account within 7-10 business days.
Why Consider an ERC Buyout?
The IRS has been clear about continued delays. Business owners shouldn't expect the agency to begin working on additional ERC claims until 2025. Meanwhile, your business has immediate needs payroll, inventory, growth opportunities, or operational expenses that can't wait for government processing.
An ERC buyout provides immediate liquidity without adding debt to your balance sheet. You're not taking on monthly payment obligations or interest charges. It's simply a business transaction that converts a future asset into present-day cash flow.
Most Frequently Asked Questions
Will I get the full value of my ERC claim?
No. You’ll receive 80-90% of your claim value upfront. The funding company keeps the difference as their fee for assuming the risk and waiting for IRS processing.
Can I sell just part of my ERC claim?
Yes, you can sell part of your claim and have the IRS process the rest directly. Keep in mind that some companies may require a minimum ERC amount, which can be as high as $100,000.
What if my ERC claim gets audited or rejected?
This depends on your agreement terms. Some buyouts are non-recourse (you keep the money regardless), while others may require repayment if the IRS rejects your claim. Always clarify this before signing.
How long does the process take?
Most companies provide pre-approval decisions within 48-72 hours and fund within 14-21 business days of acceptance.
Important Considerations Before You Sell
Remember that the Employee Retention Credit deadline for 2021 tax periods is April 15, 2025, according to IRS guidance. If you haven’t filed your ERC claim yet, time is running out.
Before moving forward with any buyout:
- Verify your ERC eligibility using the official IRS ERC Eligibility Checklist
- Review your complete claim documentation
- Understand the buyout terms, especially regarding audit risk
- Consult with your tax advisor about potential implications
Ready to Access Your ERC Funds?
Don’t let IRS processing delays hold back your business growth. If you have a filed ERC claim worth $100,000 or more and need immediate working capital, an ERC buyout could be the solution you’ve been looking for.
Get started today with a free consultation. Our team specializes in ERC buyouts and can provide you with a no-obligation assessment of your claim value and buyout options.
Contact us now to discuss how we can convert your pending ERC refund into immediate business capital. No upfront fees, no lengthy applications, and funds in your account within days of approval.
Take action before your competition does. While others wait for the IRS, you can be investing in growth, covering operational needs, and positioning your business for success.
Ready to unlock your ERC value? Fill out our quick assessment form or call our ERC specialists today for immediate assistance. Your business deserves the working capital it’s earned.