What Is a VAT Loan or Tax Loan?

VAT Loans LogoIf your business is VAT registered (most companies with turnover above £85,000 per annum must be vat registered), then you will face the regular quarterly cash flow questions like, “can we pay the VAT bill”?!  “What happens if we can’t pay VAT”? “Will our customers pay us on time”?

When do HMRC need to be paid for VAT?

HMRC allows five weeks to pay the VAT bill from the date it becomes due at the end of each quarter, but sometimes the payment of VAT falls around the same time as other large outgoings, like rent, wages and supplier payments. It can be difficult to juggle all of these things especially in quiet times of the year.

  • Can you see better times ahead, but need cash for VAT soon?
  • What happens if you do not pay the VAT bill? Well, HMRC may take action against the company or business, especially if this has happened before.
  • So, what do you do?
  • Are there any loans available? Yes – and we know all the lenders!

How is a VAT loan paid?

A specialised VAT loan will provide funds to pay the VAT bill. Some lenders pay it to HMRC directly on your behalf and then ask you to repay the loan to the lender over 1 to 3 months. Other lenders might provide a simple unsecured loan to your company and pay the VAT directly, allowing the lender up to 48 months to repay it. Which is the right loan for your company?

Each product can be different, and Company Funding Options has seen more than a dozen new VAT lenders enter into the market to provide specialised VAT loan products to small businesses. So where do you start looking?

Option 1

Search our website for VAT LOANS by clicking the link. You will be given a list of funders and then you can learn about each lender and their products.

Option 2

Contact us at CFO today on 020 7887 2667 and our friendly knowledgeable brokers will do the search for you as we know ALL the lenders and their terms. You will need to sign data protection documents for us to do this, but we can cut the time required to find the right loan for you.

Funding for VAT payments can make a big difference to your cash flow. But you should be careful not to take out such a loan when the company can’t repay it over the agreed repayment period, like 90 days. Longer repayment periods may be easier but its best to prudent.

You should have a simple cash flow forecast (you can get one Here to our cashflow model). Preparing this will tell you whether the loan is affordable. If not, you can seek help from your accountant.

As specialist corporate finance brokers, we can search the market for you to find the most appropriate loan. We will need to know what the loan is for, (such as a VAT repayment) how long you will need to repay that loan and any other loans or borrowings that the company already has. Just get in touch and we will get you the funding you need.

What are the benefits of tax loans or VAT loans?

  • Improve cash flow with a loan and easy monthly repayments.
  • Short repayment from 3  to 48 months.
  • Smooths cash flow peaks and troughs.
  • Allows you to keep your bank funding options available and does not impact upon any security that you may have given your bank.
  • With specialist help from us, generally decisions are very quick and the funding can be made available within a day or two.
  • Dedicated and expert personal service from our CFO account managers. We are FCA authorised.
  • Prevent legal and debt collection action by HMRC.
  • Available to any VAT registered business.
  • Lets you get on with running the business.

We will need you to engage us to act as a broker and from that point we may be able to raise the funds in as little as 24 hours. But don’t leave it too late to look for a loan i.e. when the VAT bill passes payment date!

VAT loans may just bridge the gap between a slow period of trading and better cashflow ahead. Get a VAT or PAYE loan now

Note personal guarantees may be required if your company has a poor credit rating.