Cashflow is an essential part of any business, but periodically managing large expenditures alongside supplier overheads can be a challenge. A short-term finance solution can aid cash flow ensuring that larger bills are spread across several months, reducing their impact on working capital.
VAT Funding (otherwise known as a VAT Loan) frees up capital for use in more significant areas of your business, like those that support growth and opportunity.
What is VAT Funding and how does it work?
Quarterly VAT payments can take a big hit on your business’ cash flow. Access to additional finance solutions to cover this can be a game-changer.
VAT Funding provides a short-term business loan to smooth your quarterly bill into manageable monthly payments, often spread over a 3–12-month period.
The loan provides the funds needed to settle your VAT bill, boosting the company’s overall cashflow status. With the smart use of VAT funding, your tax bills become affordable, recurring payment schedules that strengthen your business balance sheet, rather than one oversized payment that has a detrimental impact every quarter.
Often, it takes as little as 24-hours to arrange, and you have up to 14 days after each VAT bills due date to apply for funding.
Benefits of VAT Funding
- Boost your company cashflow
- Reduces pressure on cash reserves
- Avoid late payment fines of up to 15%
- Fixed monthly repayments
- Increase business competitiveness, growth and expansion
- Boosts your spending power
Eligibility Criteria
For every lender, there is a particular set of criteria you will need to meet to be eligible for VAT Funding. In general, this will include:
- UK VAT-registered business
- HMRC VAT bill over a specific amount e.g., £2000
- Last 3 months business bank statements
- Latest filed accounts
VAT Funding is fast and simple to secure. Once you have met the criteria, generally all a lender will need to know is what your VAT liability is and the term you would prefer. No deposit is required, and we will help to secure an agreement that’s tailored to you and your business requirements.
For more information on VAT Funding or to apply in time for your next quarterly bill, call us on 01908 92 62 62 or hit the ‘APPLY NOW’ button on our website for a free, no-obligation quote.