When the quarterly VAT bill comes around, it often puts a temporary strain on the company cashflow. Whilst businesses may often set aside funds to cover their VAT bills, there are often reasons why businesses may not want to part with all the cash in one go.
We’re finding that more businesses are looking to VAT loans to spread the cost of their quarterly bill. This means that HMRC are paid on time by the funder, preventing potential penalties, but the company can retain most of the cash within the business.
If you have a VAT bill of £20,000 or more, you can spread the cost with weekly or monthly repayments by direct debit, up to a maximum term of 3 month. The cost of the facility is simple, with rates from 1.5% per month.
What types of businesses are accepted?
Limited companies, LLPs or PLCs.
Security
Personal Guarantee from at least one director who must be a UK homeowner
To apply for a VAT loan on your behalf, all we need is the following;
• Up to date position with HMRC
• Latest annual accounts including P&L and Balance Sheet
• 3 months bank statements
If you are interested in spreading the cost of your current or upcoming VAT bill, get in touch with a member of the Key team today.