VAT Funding, Loans & Finance
Borrow £5,000 to £1,000,000
with 24-Hour Funding
SECURE YOUR FUTURE WITH
Tailored Business Loans and Asset Finance
Attractive Rates & Customisable Terms
Funding from £5,000 to £2 Million
All Business Sectors Welcome
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The Best Options for VAT Loans
Is your VAT bill putting a strain on your cash flow? At V4B Business Finance, we provide tailored funding solutions designed to meet the unique needs of your business.
Our financing options come with competitive rates and flexible repayment terms, allowing you to spread your VAT payments over 3 months. This way, you can manage your tax obligations while maintaining healthy cash reserves!
What is a VAT loan?
Here are just a few examples of what a VAT Loan can do for you and your business:
- Optimise Cash Flow: Use the loan to cover your VAT payments, ensuring you don’t disrupt your daily operations or cash flow.
- Preserve Working Capital: Keep your working capital available for essential business activities by using the loan specifically for VAT obligations.
- Avoid Penalties: Ensure timely VAT payments to avoid late penalties and interest charges, protecting your business’s financial standing.
- Leverage Opportunities: Free up your cash reserves to invest in growth initiatives, whether it’s expanding into new markets, improving operations, or upgrading equipment.
- Improve Financial Planning: Spread your VAT payments over time, allowing for smoother cash flow and more accurate financial planning throughout the year.
- Support Business Growth: By securing VAT funding, you can focus on allocating your resources toward strategic business development, such as marketing, hiring, or innovation, driving sustainable growth.
Check Your Options
Fill out our quick form. If you’ve traded for 2+ years with £250,000+ turnover, we can help
Speak To Our Team
Our team will contact you to understand your needs and tailor a lending solution for your business.
Start Funding Process
Once your application is approved, our team will finalise and send your loan agreement for signing.
Complete Funding
Once we receive the signed agreement, funds can often be paid out within 24 hours.
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The Following Sectors:
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Common questions about VAT loans
1. What is a VAT Loan?
A VAT Loan is a type of financing that helps businesses cover their VAT liabilities without disrupting cash flow or working capital. It allows you to spread the cost of your VAT payments over a more manageable period.
2. Who is eligible for a VAT Loan?
Most businesses that are required to pay VAT are eligible to apply for a VAT Loan. Eligibility may depend on factors such as your credit rating, the amount of VAT due, and your business’s financial condition.
3. How much can I borrow with a VAT Loan?
The amount you can borrow usually depends on the size of your VAT bill and your business’s financial health. Lenders may offer loans that cover the entire VAT liability or just a portion of it.
4. What are the repayment terms for VAT Loans?
Repayment terms for VAT Loans are generally 3 months, depending on the lender. Some lenders may offer flexible repayment options based on your business’s specific needs.
5. Are there any fees associated with a VAT Loan?
Yes, VAT Loans may come with fees such as arrangement fees and interest charges. It’s important to thoroughly review the loan agreement to understand all the associated costs.
6. How quickly can I receive funds from a VAT Loan?
Once your VAT Loan is approved, funds are typically disbursed quickly, often within a few days. However, the exact timeframe will depend on the lender’s processes.
7. Can I use a VAT Loan for other business expenses?
VAT Loans are designed specifically to cover VAT liabilities, so they should be used for that purpose. However, by covering your VAT bill with the loan, you may free up funds for other essential business expenses.
8. Why should I consider a VAT Loan instead of using my working capital?
A VAT Loan allows you to preserve your working capital for other business needs, avoiding cash flow disruptions. This can be particularly useful for businesses looking to invest in growth opportunities while still meeting their tax obligations.
Our Loan Options
What types of business loan options are available to you and your organisation, whether you are looking for a small business loan or a large corporation loan?
Business Loans
Get additional working capital to help grow your business with a tailored business loan.
VAT Funding
Do you want to spread your VAT bills over the year to improve cash flow? We can help.
Acquisition Funding
If you are considering acquiring another business, we can offer financing.
Corporation Tax Loans
Need to fund a corporation tax bill? We offer bespoke funding tailored to your business.
Professional Indemnity Insurance
We can help you finance your insurance to keep your business protected.
AND MUCH MORE
Business VAT Loans Explained
Spread the cost of your VAT over 3 Monthly Payments
V4B Business Finance provides VAT funding that enables your UK business – or businesses – to improve your cash flow by spreading the cost of quarterly value-added tax bills for sold goods and services with a very manageable and affordable short-term loan amount.
For instance, registered businesses can borrow from £5,000 to £1,000,000+ over a 3-month repayment schedule as part of a VAT loan, allowing you to keep your cash reserves high to cater for your business needs in the short term. As long as you have an annual turnover of at least £250,000 and a good personal/business credit history, we’ll be able to assist with some very good loan terms.
What Are VAT Financing Solutions?
Taking out traditional business funding, such as other types of business loans, to cover your VAT liability doesn’t always make sense, as you likely only need a short-term solution. These VAT financing options offer this short-term, simple solution, easing the pressure on your cash reserves and providing you with a quick fix to an urgent problem.
With the standard rate at 20%, a VAT bill can be a blow if you haven’t planned properly or had unforeseen unexpected costs come in. This leaves you with a short-term shortfall to cover your tax liabilities, and your business has limited cash flow available to pay your quarterly VAT bill.
For instance, it allows your business to manage your VAT payments without impacting their overall financial stability, ensuring they meet their obligations on time without the stress of large, immediate cash outflows.
VAT-registered Business
VAT-registered businesses, both large and small, are increasingly turning to funding options such as VAT loans to free up your money to allow more investment in your business as these allow you to access your VAT funds immediately after the VAT return is submitted to HMRC.
VAT funding can also help you avoid the problem of HMRC surcharges, late payment fines and interest charges, which worry a lot of business owners.
VAT Payment Problems Faced by Businesses
On paper, the VAT you charge should balance out against your VAT bill on services or products. In reality, this rarely happens.
Sometimes, a VAT bill larger than anticipated may jeopardise your business’s finances, or you may not have the capital needed to pay your VAT on time because of unexpected financial pressures.
In situations like these, VAT finance gives your business a critical lifeline.
A further potential problem with VAT – particularly for small businesses and self-employed individuals – is the largely compulsory switch to Making Tax Digital (MTD) software.
As part of the government initiative to digitise VAT and income tax systems, MTD will fundamentally transform the way tax administration works, heralding the end of the old tax return.
While presented as a benefit to businesses by streamlining the tax system, Making Tax Digital has resulted in concerns such as the extra cost of online accounting software. A VAT loan or a loan for business equipment could help make your transition to MTD run more smoothly.
Why You Might Need a VAT Loan
Overcome Short-term Working Capital Issues
- Not being fully prepared for an upcoming VAT bill.
- Your business has been hit with an unexpected expense.
You Have Had a Slow Quarter
Benefits of VAT Loans
Split Large Lump Sum into Monthly Payments
Many small businesses, especially those that do not have huge amounts of cash reserves available when your VAT bill hits – and larger companies that don’t want to deplete or have short-term cashflow issues – can find a larger lump sum VAT quarterly payment a bit restrictive to their operating reserves.
Consequently, this funding solution can split your VAT bill into easier-to-manage monthly payments spread over a longer term of 3 months, which can be a real game changer and help you, especially in the short term.
Especially as these loans offer you flexibility in your loan repayment terms and quick access to your capital for managing routine VAT payments.
VAT Loan Eliminates Late Payments
How Our VAT Loans Can Help Your Business
V4B Business Finance offers VAT funding from £10,000 to £1,000,000 – plus with monthly repayments over three instalments all at very competitive rates. We routinely provide millions of pounds a year in VAT loans that help many companies grow their business – from multi-national corporations to medium-sized operations and small, niche businesses. These loans are unsecured – so you don’t risk forfeiting business assets – and applying for a loan won’t damage your credit rating.
We can approve VAT loans within 24 hours, and our consultants can help you customise the most suitable package for your needs. We work with major underwriters, which means fast, stress-free VAT funding for your business, with competitive, transparent interest rates and flexible terms.
Is My Business Eligible for a VAT Loan?
In addition to standard credit checks and an assessment of the business’s financial status, our other eligibility criteria typically include:
– The business is VAT-registered with HM Revenue and Customs (HMRC)
– Trading for more than one year
– Normally a limited company, though partnerships and some sole traders may also qualify
– Annual taxable turnover exceeds £250,000, excluding VAT
– Many types of businesses, such as those in manufacturing, consulting, professional services, construction, and more, are eligible for a VAT loan.
– Located in the UK
Application Process
✔ Filling Out the Application Form
✔ Document Collection
This includes business bank statements, credit score checks, filed accounts, and other relevant information to assess your business’s financial situation.
✔ Receiving Funds
Once accepted, the funds are typically transferred within 48 hours, allowing you to keep up with your legal requirements.
Please note: You may also need to provide collateral to secure the loan or fill out a personal guarantee.
✔ Allocation to One of Our Case Managers
A dedicated case manager will guide you through the process and collect the required documents.
✔ Decision Within 48 Hours
Unlike high-street banks, we provide flexible, bespoke finance solutions delivered quickly, and we can provide you with a decision within 48 hours – allowing you to have quick access to funds.
What is the Difference Between a VAT Loan and an Unsecured Business Loan?
A VAT loan is specifically designed to help businesses pay their HMRC VAT bill, as it covers the amount due spread over a period of time, ensuring that your businesses / business avoid late payment penalties. As a result, VAT loans are often short-term and tailored to meet VAT deadlines.
An unsecured business loan, on the other hand, can be used for a variety of purposes, such as purchasing equipment, expanding operations, or managing cash flow. VAT loans also do not require collateral parse, meaning their no assets to claim on the business’s assets if the loan is not repaid.
Please note: That we can also we can also offer VAT loans without Directors Guarantees in some instances for values up to £150,000 per quarter as well.