VAT loan
Free up cash flow and spread your quarterly VAT bill over 3 months
Ready to go?
Apply in 3 minutes. One of our Business Finance Specialists will then guide you through your options.
VAT loan
Free up cash flow and spread your quarterly VAT bill over 3 months
Ready to go?
Apply in 3 minutes. One of our Business Finance Specialists will then guide you through your options.
Loan Amount
£10k plus
Loan Term
Up to 3 months
Time to Funds
From 24 hours
Interest Rate
From 1.5% per month
Short term loans to cover VAT bills
Managing cash flow is a fundamental part of running a business and occassionally that may involve the need to spread the cost of large bills. You may have used up the cash needed to pay HMRC, or you may want to preserve the cash in your bank accounts to use later. Whatever the reason it’s important to make sure that HMRC get paid on time.
What is a VAT loan?
A VAT loan is short-term finance used to pay your business’s VAT bills on time, while freeing up cash to continue trading. It’s a specific type of business loan repaid over 3 months. A lender will typically pay the funds directly to HMRC so that the liability can be settled in full. Then you’ll make weekly or monthly repayments until the loan is repaid. Typically VAT loans can be paid off over 3 months at which point your next quartlerly bill will be due.
Am I eligible for a VAT loan?
To be eligible for a VAT loan you must meet the following minimum criteria:
1. Borrower type: Limited Companies, LLPs or PLCs.
2. Minimum borrowing: £10k
3. Security: Personal Guarantee from all Directors. Must be a UK property owner.
4. Tax position: Confirmation of HMRC being up to date.
How do I apply for a VAT loan?
Not all lenders provide VAT loans as they are a specialist type of finance, and it’s unlikely your bank will provide this type of finance. However, within BIZL’s extensive panel of lenders we have a number of providers who are set up specifically to provide this type of quick, short-term finance.
Here’s how to apply:
1. Submit your application
2. Provide your latest annual accounts, a print screen of your HMRC Tax Summary, an aged debtors and creditors list and 3 months’ bank statements.
3. Lender assesses.
4. If accepted funds will be paid directly to HMRC.
Can I get a time to pay arrangement with HMRC?
A Time to Pay (TTP) arrangement can be agreed with HMRC to spread the cost of your tax liabilities over a longer period if you are struggling to pay them. This could be invaluable in the current climate while businesses adjust to the unexpected and rapidly changing circumstances. If you cannot agree a time to pay arrangment with HMRC, or don’t want to, then taking out a VAT loan is a good solution.
Want to talk to a finance expert?
Talk to one of our Business Finance Specialists. We’re on hand to talk you through your options.