VAT loans to cover your tax bill from HMRC
VAT loans, what are they and how do they work?
VAT loans are specifically designed for helping with the short-term pain of an expected or large tax bill from HMRC.
Arranged as a type of short-term financing that allows businesses to pay their VAT bills on time. These loans are specifically designed to help businesses with their VAT obligations and are usually offered by specialist lenders.
A VAT loan typically covers the cost of a company’s VAT bill, plus any associated penalties and fees that may have accrued due to late payment. The loan is then repaid over an agreed-upon period of time, with interest.
You may still be waiting to get paid for recent sales that have generated the VAT bill in the first place and just need a temporary lending hand or you may just have something more pressing that needs to be paid for.
Whatever the reason, First Oak Capital has a panel of lenders who are ready to step in and help you, avoiding any late payment penalties or fees, whilst protecting the credit rating and cash flow of your company.
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For VAT, the term is 3months and for Corporation Tax the term is between 6 – 12 months.
A VAT loan is a type of short-term financing available to businesses in the UK that need help paying their VAT (Value Added Tax) bill. VAT is a tax charged on most goods and services sold in the UK, and businesses that are registered for VAT are required to pay the tax to HM Revenue & Customs (HMRC) on a regular basis. If a business is unable to pay its VAT bill, it may be charged interest and penalties. VAT loans can help businesses to manage their cash flow by providing the necessary funds to pay their VAT bill on time, thereby avoiding late payment fees and penalties. The loan is repaid over an agreed-upon period of time, typically with interest. VAT loans are typically offered by specialist lenders and are tailored to the specific needs of businesses.
To apply for a VAT loan, you will need to provide information about your business’s financial situation, including your VAT bill and any other outstanding debts or obligations. To get a quote for a VAT loan click here
Yes, VAT loans are available to all types of businesses in the UK that are registered for VAT and need help financing their VAT bill. However, eligibility requirements and lending criteria may vary depending on the specific lender.
The amount you can borrow with a VAT loan will depend on the specific lender and your business’s financial situation.
A VAT loan provides businesses with the funds they need to pay their VAT bill on time. The loan is repaid over an agreed-upon period of time, typically with interest.
One of the most significant benefits of VAT loans is the improved cash flow they provide to businesses. Companies can experience cash flow problems due to the timing difference between receiving payment from customers and paying VAT to HMRC. This can put a strain on a company’s cash flow, especially if they have a large VAT bill. A VAT loan can help businesses to maintain their cash flow by providing the necessary funds to pay their VAT bill, allowing them to avoid late payment fees and penalties.
VAT bridging loans are used to pay VAT owed on commercial property purchases. There are complicated rules regarding VAT liability on business real estate, and it is not uncommon for this tax to become apparent only during the closing process. This unforeseen burden may result in significant additional costs, or even cause the sale to be aborted because of the large sums involved. It is possible to alleviate this thorny problem with a VAT bridging loan.