What are Tax & VAT Loans?

Loans for tax or VAT are becoming increasingly common. When cash flow is tight and an unexpected bill crops up – a fast, flexible loan can be a lifesaver.

Read on to find out more about how we can help and the options available to you to fund that tax payment or VAT bill. If you’d prefer to speak with an expert simply fill in the form.

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Taking Out A VAT Loan

A larger than expected, or even unexpected tax or VAT bill can be destabilising for a business and can sometimes put future trading at risk. There are plenty of options to ensure your bill can be paid on time to avoid any serious problems.

Even when a bill doesn’t turn up unexpectedly, other factors can affect cash flow. These can include late payments from customers or other unexpected costs, such as broken machinery or vehicles. Whatever the situation, we have a range of options to take the pressure back off you.

Taking out finance to cover the bill can be cheaper that racking up late-payment fines.

What Can You Fund?

We can arrange business finance for most situations, but our VAT bill loans are usually used to pay for the following:

Corporation Tax

Paying tax in one big lump sum can be difficult to manage for small businesses, especially if you’ve not been able to set aside enough money throughout the year. Failure to make the payment can result in penalties being applied which can quickly add up.

PAYE

If your PAYE is due and you don’t have the money on-hand, you will need to raise money quickly. Depending on your circumstances, we can raise money in as little as 24 hours.

Quarterly VAT

Funding a VAT bill must be considered a high priority for any business and we speak with a number of business owners who are struggling to make the payment. As important as it might be, it can be tricky to keep putting aside the money needed to pay, causing problems for the business.

VAT On Property Purchases

Commercial properties are often VAT registered, meaning VAT must be paid on them when they are bought. When you’re already putting down a large deposit to obtain a commercial mortgage, it can be tricky to also pay VAT on the purchase price. We can arrange unsecured loans for the purchase that are repaid when the VAT is reclaimed on the quarterly return.

How Much Can I Borrow?

We can lend from £10,000 up to £500,000 on for the payment of tax, VAT bills or other financial emergencies.

Will I Qualify?

We work with lenders across the whole business finance market and offer a wide range of products. One of our advisers will talk through your circumstances and details of your requirements and advise you on the best course of action.

Where borrowing is required, we will let you know which products would be most suitable for you, how much they will cost and how quickly you are likely to get the money.

How Quickly Can I Take Out A VAT Loan?

We have facilities that can complete in as little as 24 hours from your initial application. Most unsecured products can usually complete in 3-5 days.

What Products Can Be Used to Fund My VAT or Tax Bill?

The most suitable product will of course depend on the individual circumstances of your business. Generally speaking, unsecured business loans tend to be the most commonly used product. Although consideration should also be given to the following:-

We always talk through your circumstances in full and will consider all options for you to ensure you’re always offered the most suitable product.

How Does the Process Work?

This will of course depend on the most suitable product for your circumstances.

Firstly, we would discuss your circumstances over the phone to build a picture of your business. Once this initial consultation has taken place, we will be in a position to discuss the most suitable options with you and move forward to application.

We work with you throughout the process to ensure everything runs smoothly and quickly, negotiating with the lender on your behalf to ensure that you receive the best deal.

Once the application is completed, the funds are paid into your bank account to allow you to settle your tax or VAT bill.

What Information Will the Lender Require?

Each lender will have their own requirements. But, in general, you will be expected to provide the following:-

  • Details about yourself and your business
  • 2 years accounts for your business
  • 3-6 months business bank statements
  • 3-6 months personal bank statements
  • Details of the tax or VAT bill that you’re looking to fund
about-the-author-gary-hemming

About The Author

This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.

Gary Hemming CeMAP CeFA CeRGI CSP  -  
Commercial Lending Director

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