Spread your VAT bill

A VAT loan lets a business spread the cost over manageable repayments, typically across 3 months, to bridge the cash flow gap the quarterly bill creates.

Why the timing hurts

There is a lag between collecting VAT from customers and paying VAT on your own purchases. For businesses with long payment terms, the bill can fall due before the cash it relates to has actually arrived.

Applying

Work with a specialist who can source multiple offers. Lenders typically want recent accounts, 3 months of bank statements, and confirmation of the HMRC liability.

Approval

Lenders pay HMRC directly, and generally structure the loan over 3 months to align with the quarterly cycle.

Interest and fees

Charged at a low fixed fee, varying with the term and the lender's view of risk.

The benefits

• Improved cash flow through the quarter
• Avoids HMRC penalties and interest
• Doesn't interfere with other credit lines
• Quick, competitive offers

Worth considering

Choose a reputable adviser and make sure you understand the agreement terms before committing.

For an independent, no-obligation review of your options, call 0330 0438 011.