Over the past few years, HMRC has significantly improved its systems to ensure business taxes are paid on time. This conflicts with the increasing cash-flow difficulties many businesses are facing in today’s trading.

VAT loans – avoid HMRC penalties

Being in arrears with HMRC is a threat to your business and can be very stressful. What’s more, HMRC fines are incremental, starting at 5% and ranging up to 15% of the outstanding balance. HMRC will also put your business on a ‘watch’ register for a further 12 months after your account is brought up to date.

VAT loans can avoid all of this stress – and is less expensive than VAT fine!

With VAT loans, our funders pay your full HMRC bill direct, after which you make three monthly payments to settle the loan. Therefore, if another VAT loan is required to maintain your HMRC liability in the next quarter, the advance can be drawn down again.

Help with longer-term VAT liability

If your business is facing a larger, historic VAT liability, we can help to arrange direct settlement via a VAT loan, with your repayments made over a longer and more manageable period.

Short term finance solution 

Cash flow is an essential part of any business, however periodically managing large expenditures while still managing supplier overheads can at times be difficult. This is when a short term finance solution can aid your cash flow ensuring that your business does not have to go through a cash flow drought.

Our VAT loan (can be referred to as VAT funding or VAT bill funding) will allow you to utilise your working capital in other significant business areas.

VAT liabilities can be spread over 3 – 12 months. When your VAT demand is due each quarter our unsecured VAT loan spreads the cost into manageable payments and simple to apply for.

How does a VAT loan work?

  • Let us know how much your VAT liability is
  • We will inform you of the payments over a 3 month period
  • Draw down each quarter can be arranged
  • Continue as long as you need the finance

What are the benefits of using a VAT loan?

  • Takes the pressure off cash reserves 
  • Retain working capital for other business areas
  • Smooths cash flow peaks and troughs 
  • Fixed monthly repayments
  • Competitive rates
  • Quick and simple to arrange
  • Can be paid directly to HMRC
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