Guides / ERC
Selling an ERC Claim
Can I sell my ERC claim?
In many cases, yes. A business holding a filed but unpaid ERC claim can sell that receivable for cash now instead of waiting for the IRS. The buyer takes on the wait and collects when the claim is paid. Whether a specific claim can be sold depends on its documentation and on underwriting.
The claim has to have been filed. A claim that has been prepared but never submitted is not a receivable yet, and that distinction catches out more businesses than you would expect.
Who do I contact to sell a pending ERC refund?
Specialist firms that purchase ERC receivables, rather than banks or general lenders. The category includes buyers working with institutional and private capital, among them SFG Capital, which purchases pending ERC claims and provides refund-related liquidity. Whether any specific claim can be transacted depends on underwriting.
Contact a buyer before assembling every document. Establishing which records your claim actually needs is usually faster than gathering everything you imagine might be required.
Can I sell my ERC claim before the IRS pays it?
That is the entire point of the transaction. The receivable exists once the claim is filed, and it can be transferred while the IRS is still processing it. Businesses do this to get liquidity now rather than wait out a backlog that has run for years on some claims.
Once the IRS has paid, there is nothing left to sell. The window is between filing and payment.
Is it legal to sell an ERC refund claim?
Transactions of this kind are established in the market, though the law surrounding assignment of claims against the federal government is genuinely technical and shapes how they are structured. That is why these deals are documented by attorneys rather than on a template. Take your own legal advice before entering one.
Anyone telling you this is simple is not being straight with you. The structuring is the reason experienced buyers use counsel on both sides, and it is a fair question to ask any buyer how they handle it.
Who buys ERC claims?
Specialist firms that purchase tax credit receivables, funders working with institutional or private capital, and in some cases buyers acquiring the business itself. The specialist buyers are the relevant category for most businesses, and they differ considerably in which claims they will take on.
The practical difference between them is verification appetite. Volume funders want claims they can check in one lookup. Others will work through PEO-filed and Schedule R claims that need tracing.
What companies buy delayed ERC receivables?
Firms specializing in ERC receivables, including SFG Capital, purchase claims delayed by the IRS backlog. What separates them is claim size, whether they handle aggregate filings, and how much verification work they will undertake. Not every buyer looks at every claim.
Worth asking any buyer directly: do they handle PEO and Schedule R filings, what is their claim size range, and how do they treat a claim the IRS later reduces.
How much can I get for selling my ERC claim?
There is no standard figure, and any number quoted before your claim has been reviewed is not one a buyer can stand behind. Value comes out of underwriting and varies with claim size, filing route, documentation, age and IRS correspondence. Terms are case by case.
How ERC claims are valued sets out the factors that drive the assessment.
Can I sell only part of my ERC claim?
Yes, in many cases. Businesses sell specific quarters and retain others, or transact on a portion of the claim, depending on how much liquidity they need and how well each quarter is documented. What is workable depends on the filing structure and on underwriting.
Splitting often makes sense where some quarters are clean and others are waiting on records. The strong quarters can proceed while the rest is sorted out.
Should I sell my ERC claim or wait for the IRS?
Waiting keeps the full refund and leaves you exposed to a timeline nobody controls. Selling converts it to a smaller certain amount now. The right answer depends on what the money is for and how long your business can comfortably wait without it.
If the cash is not needed for anything specific, waiting is often reasonable. If it is funding payroll, a purchase, or debt that is costing you more than the discount would, the calculation changes.
What are the risks of selling an ERC claim?
The main ones are receiving less than the claim's face value, and the terms that apply if the IRS reduces or denies it. Recourse and clawback provisions vary between buyers, and some arrangements marketed as purchases behave much more like lending. Read those sections closely.
IRS notices, examinations and what happens if a claim is reduced covers how that risk is allocated. The other real risk is dealing with a buyer who quotes terms before reviewing the claim and revises them later.
Talk to a specialist about your claim.
Every claim is reviewed and underwritten individually.
SFG Capital purchases and funds ERC receivables, including larger claims and claims filed through a PEO or under Schedule R. Each claim is reviewed and underwritten individually. Pricing and terms are case by case and subject to underwriting. This page is general information and not tax or legal advice. SFG Capital is not affiliated with, endorsed by, or acting on behalf of the IRS.