Corporation Tax Loans
Corporation Tax Loans
Get a corporation tax loan with ABC Finance today. We can help you get funds in as little as 24 hours.
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Receive your funds in as little as days
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Author: Gary Hemming CeMAP CeFA CeRGI CSP
20+ years experience in business loans
Corporation tax is based on the profit your company makes.
There are over five million registered companies in the UK and those that are trading profitably will need to pay corporation tax to His Majesty’s Revenue and Customs (HMRC). HMRC is the UK’s tax, payments and customs authority.
If you’re facing a corporation tax bill that you’re unable to pay, a corporation tax could see you receive the funds you need to pay in as little as 24 hours.
How do loans for corporation tax work?
Corporation tax loans work by offering you an upfront cash injection to settle the bill, which is then repaid over the full loan term. They’re a form of business loan that is used specifically to settle your tax bill.
Whilst it is advisable to put aside money to pay corporation tax, this isn’t always possible when a business is growing and cash flow is needed; however, this isn’t always possible. As a late tax payment can incur fines and penalties, it may be a good idea to borrow the funds needed to pay.
Taking a loan specifically to pay corporation tax can help manage cash flow by spreading payments over a longer term whilst meeting tax commitments and avoiding late payment fees.
There are many specialist lenders offering tax loans that can pay your bill upfront and then spread the payments over time from three to 18 months, giving you the flexibility to be able to manage your cash flow.
How to apply for a corporation tax loan
To apply for a corporation tax loan, simply fill in the form on this page and we’ll get in touch straight away.
From there, we’ll be able to match you with the perfect lender for your needs and get your application pre-approved in as little as minutes.
If you’re happy with the terms offered, we can handle the full application process for you to make sure everything runs smoothly and you receive your funds quickly.
We specialise in offering fast business loans, so you won’t be left waiting around, not knowing when you’ll hear back.
Read more – small business loans or loans for limited companies.
How much can I borrow?
Corporation tax loans can vary considerably and are typically from £5,000 with no maximum loan size, although there is no specific limit to the amount you can raise.
Our unsecured business loan range is available up to a maximum of £2,000,000, although most businesses will qualify for a maximum of £500,000.
Secured business loans have no maximum size.
Advantages and disadvantages
As this type of loan is solely for corporation tax and is unsecured the process of obtaining finance can be much quicker than secured loans, with less paperwork involved.
Another advantage of taking a corporation tax loan is that it can actually lower your tax bill and the amount you will owe HMRC in the future.
Interest on a loan that is raised for business purposes can be offset against future corporation tax payments.
As with many forms of business finance, if a loan is taken for a specific purpose and paid off within the specified terms of the agreement then this can improve your credit rating.
Borrowing to fund your tax bill allows you to protect your cash flow and increase your working capital finance position.
A key disadvantage is that there will be costs involved in taking out a loan, such as interest or fees and these will vary according to your circumstances. As with all loans, there will be penalties if the money is not repaid according to the agreed terms and this could negatively impact upon your credit score.
How else can I raise finance for my business?
The main financial products available can be broken down into invoice finance, asset finance, merchant cash advance and supply chain finance.
Invoice finance allows you to release funds from the invoices that you have raised, but have not yet been paid. It is ideal for businesses that operate on delayed payment terms.
As a financial product, it can be broken down into invoice factoring (also known as debt factoring) and invoice discounting. The key differences come down to who is responsible for credit control. Confidential invoice discounting allows you to borrow without alerting your customers.
Asset finance and inventory financing, also known as equipment financing provides the funding needed to purchase new equipment for your business.
Business revolving credit facilities is a flexible way to borrow money for companies in need of money quickly. They allow you to borrow and repay funds as needed, acting as an ongoing business cash flow loan.
A merchant cash advance, also known as a business cash advance allows you to raise finance against your future card terminal receipts. They tend to work well for businesses that take a large proportion of their turnover through their card terminal, such as pubs, restaurants and retailers.
Frequently Asked Questions
Decisions on corporation tax loans can be made quickly, and in some cases money will be in your account within two hours of the application being filed.
Your broker will help you provide the information that lenders will need to make a decision on your loan.
Yes, in most cases we will be able to find a range of options for you.
ABC has access to a wide panel of specialist lenders many of whom offer specific bad credit business loans. We take time to understand your needs and match you with a lender who understands your circumstances.
Yes, there are very many options for businesses looking to increase their cash flow. Lenders understand that, even for thriving businesses, maintaining liquidity in a business is important, allowing you to meet short term obligations.
Having large amounts of capital tied up is not helpful and so spreading corporation tax payments throughout the year is a good strategy for managing liabilities.
A corporation tax loan is based on your specific tax liabilities and cannot be used to fund other activities, it must be used to pay tax.
Using a specialist broker is important as often the range of options on offer can make choosing the right product daunting.
Approaching lenders individually could result in a number of hard searches for credit against your business and is not helpful for your credit score.
A broker will advise on the type of loans that are most suitable and have a clear view of what lenders will offer you after before a final credit search is made on your business.
ABC Finance works with a range of lenders and has over twenty years of experience matching lenders to businesses and negotiating to get them the very best deal.
Our team takes time to understand your needs and circumstances and will work with lenders to get you the right match for your business taking the stress and worry out of the process.
