It only takes one bill to land for a business’s cash flow to go from stable to weak.
That was exactly the forecast for a long-standing customer of Moorgate Finance when a £58,000 VAT bill dropped, due by the end of January 2024.
At a time where business was naturally low in the season, the bill couldn’t have come at a worse time for them, with cash flow due to take a hit over the next quarter anyway.
The Challenge
In the low season, it seemed like opportunities to raise cash were limited and paying the VAT bill upfront would be detrimental to the business as a whole.
Thankfully, having worked with Moorgate Finance several times before, the customer called upon our expertise with the optimism that we could help. A lot of customers don’t realise we can finance tax, so it was a happy surprise to this customer to find out we could.
The Solution
We’re pleased to say that we secured funding and reduced the pressure on this business.
We were able to split the customers VAT bill over three equal monthly payments, helping to soften the blow whilst the business saw out its quiet season.
This offered a considerably cheaper funding solution than a standard commercial loan and no Directors Guarantees were required. It also offered no negative impact on their business credit status, a stark contrast to a time-to-pay arrangement with HMRC directly.
A simple funding solution to a potentially big cash flow problem.
The Highlights
- £58,000 VAT bill due in a business’s low season.
- Funding secured to split payment across 3 months.
- No negative impact on business credit status.
Did you know we can also help with funding for Corporation Tax and Self-Assessment, on top of VAT bills? If tax bills are putting pressure on your cash flow, start a conversation with us today.
Make a 2-minute, no obligation application that won’t impact your credit score here: www.moorgatefinance.com/apply-now or call 01908 92 62 62.