How financing your VAT bill is a real thing…and a REAL help.
There are two different but key reasons for considering the unsecured business loan when addressing the quarterly VAT bill:
1. Financing the liability and spreading the repayments over 3-months frees up working capital that can be applied to business-specific projects geared towards greater returns and growth.
2. Paying the bill coincides with other major business outlays, like the salary run - this will take the business deep into the overdraft, or perhaps there isn’t headroom in the overdraft to make all that month’s overhead costs.
How does it work?
The business can decide to finance occasional quarterly VAT bills, perhaps even once a year, at a time when they know cashflow will be tight, or they can choose to finance a looming bill that is unexpectedly high and is going to put a strain on the following month’s cashflow, or, they can choose to strategically finance each quarterly VAT bill throughout the year, which may serve to create a war chest of additional working capital with which to grow the company.
Unsecured SME commercial loans are the ideal product for VAT financing. In most cases proposals are completed in 48-hours, and funds can be paid direct to the business or direct to HMRC.
Proposals generally require 3-months business bank statements, management accounts (if available) and a copy of the VAT bill.