Every VAT-registered business in the UK knows the feeling. The end of the quarter arrives, and with it comes a VAT bill that needs to be paid to HMRC, often running into thousands, or even tens of thousands, of pounds.
Whether you are a sole trader, a growing SME, or an established company, VAT bills don’t discriminate.
For many businesses, finding a large sum of money can put a strain on cash flow, regardless of how well the business is actually doing. That is where a VAT loan can help.
A VAT payment loan is a simple and increasingly popular way for UK businesses to meet their VAT obligations without disrupting the money they need to keep trading day to day. Rather than draining your working capital every quarter, a VAT business loan lets you spread the cost into affordable monthly repayments.
A VAT loan is a short-term finance product specifically designed to cover the cost of a VAT bill. Instead of paying HMRC in one lump sum from your business bank account, a lender pays your VAT bill on your behalf, and you repay the lender over a fixed term. This is typically in monthly instalments spread across the quarter until your next VAT bill is due.
A loan used to pay VAT is not a sign that a business is struggling; in fact, it is a smart cash flow management tool used by businesses of all shapes and sizes right across the UK.
Many financially healthy and well-run companies choose a VAT loan facility simply because it makes good commercial sense to preserve working capital rather than hand over a large chunk of it to HMRC every three months.
A business VAT loan is also distinct from other types of business finance in that it has a very specific and defined purpose. Lenders understand exactly what the funds are for, which often makes the approval process more straightforward compared to other forms of borrowing.
If your business is VAT-registered and trading in the UK, you are already in the right place. We work with lenders who cater for businesses across a wide range of sizes and sectors.
From small independent businesses and growing SMEs through to professional services firms, a VAT payment loan is a viable solution for almost any business that receives a quarterly VAT bill from HMRC.
Loan amounts can vary significantly depending on the size of your business. For most SMEs and limited companies, VAT business loans are available from as little as £25,000.
For professional services firms including legal, medical, dental, veterinary, pharmacy and accounting practices, we can arrange specialist VAT loan facilities up to £2,000,000, as these types of businesses can face larger VAT liabilities.
Our lenders will generally look at how long your business has been trading, your recent turnover, and your overall financial profile.
That said, VAT loan lenders tend to take a pragmatic approach because the loan is tied to a known and specific liability.
Many businesses we help discover that the criteria is more flexible than they might expect.
Even if your business has faced some adverse credit challenges in the past, it is always worth exploring your options with us.
It costs nothing to speak to us, so ask for a free quote today.
The most immediate benefit of a VAT loan is the relief it brings to your cash flow.
Rather than watching a big portion of your cash reserves leave your bank account every quarter, a VAT payment loan allows you to spread that cost into predictable monthly repayments.
This means the money you need to pay staff, suppliers, and the day-to-day costs of running your business stays in your bank (and only leaves to meet the repayments).
There is also real peace of mind in knowing your VAT bill is taken care of on time. Late or missed VAT payments can result in penalties, surcharges and interest charges from HMRC, which only adds to financial pressure and can damage your credit record.
Because the repayment term is short (traditionally aligned with your quarterly VAT cycle), the overall cost of the loan interest and fees tends to be relatively low, when weighed against the benefits of preserving your working capital and avoiding HMRC penalties.
The Evangate FS team will always make you aware of the costs involved before you commit to anything.
Kyle makes the process of taking out a VAT loan quick – especially if you have HMRC deadlines to meet!
As a finance broker, he has access to 100+ lenders who offer quick approval.
Once the application has been approved, the funds are paid directly to HMRC on your behalf, so you don’t have to worry about your bill not being paid.
All you have to do is make the repayments on time, and everyone is happy.
Here at Evangate FS, we like to keep things as simple as 1-2-3.
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Once I have all the information I need from you, I will search for the best deal from my lenders within 24 hours, then help complete the paperwork to get the loan in place.
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I promise to give you the best advice I can. You won’t get bamboozled by jargon or pressured into signing. Customers who I have helped for years will agree with that.
When it comes to arranging a VAT loan facility, you could of course go directly to a lender.
But, our job is to understand your situation and match you with the lender and product that genuinely suits your needs, rather than just the one that happens to be available.
Our process is designed to be as hassle-free as possible, and we are experienced in turning applications around quickly so that the VAT due is paid on time.
Whether this is your first time considering a loan for VAT payment or you are looking for a more competitive deal than you have had before, we would love to help.
If you have a bill on the horizon and you would like to explore VAT funding options, we are here to help.
Getting in touch is easy, and there is no obligation; we will just have a conversation about what you need.
Call our office on 0800 488 0230 or complete the quote form, and we will be in touch.
(Telephone lines are open between Monday to Friday, 8am to 6pm)
* Terms and Conditions apply – our team will explain the process when we contact you.
