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VAT Loan - What You Need to Know
VAT, or value-added tax, is a tax added to goods and services within the EU. Businesses that sell goods or services most often add VAT to the price of their products and services. If a business is struggling to pay their VAT, they may wish to consider a VAT loan, also referred to as VAT loan finance.
What is a VAT loan?
A VAT loan can help businesses who are unable to pay their taxes on time and prevents a business from incurring fees or penalties from HMRC. A loan can also help businesses prepare for upcoming payments and improve their cash flow.
Top benefits of VAT lending:
A VAT bridging loan helps to future proof your business against any unforeseen circumstances. For example, if machinery suddenly breaks or your property require essential maintenance work, a VAT loan ensures you can pay for any important business expenses and still pay your VAT on time.
Instead of paying your VAT at once, a VAT bridging loan allows you to divide your VAT into reasonable monthly instalments. This will help a business to manage their cash flow more effectively and will give them greater control and transparency over their finances.
Quick & Straightforward:
Applying for a VAT loan in the UK is simple and straight forward, helping you to simplify your business tax and expenses quickly and efficiently.
Potential limitations of a VAT bridging loan:
- If you apply and are approved for a UK VAT loan, you will be expected to make the agreed monthly payments. If you fail to make the monthly repayments, you may receive additional charges.
A VAT loan is not a tax avoidance scheme. Read more about VAT obligations in the UK, here.
Start Your VAT Loan Application With Us Today!
To learn more about VAT business finance or to start an application to pay your VAT, do not hesitate to get in touch with UK Business Loan today via our simple 4-step online application form and start your business VAT loan journey. We are commercial finance finders you can trust and have already helped many businesses in the UK.
FAQs about applying for a VAT loan in the UK
To qualify for a VAT loan, you must be at least 18 years of age and be a permanent UK resident.
Your credit score may be checked during the application process for a VAT loan. Once approved, however, the VAT bridging loan will be in your company name and will not affect your personal credit score.
A secured VAT loan is a loan that has been secured against collateral. For example, secured VAT lending may require property, real estate or stock to be approved. If you do not wish to supply collateral for VAT lending, you may wish to consider an unsecured VAT loan.
At UK Business Loan, the VAT lending process is simple and straightforward. To get started simply complete our simple 4-step application process. We do everything in our power to ensure the application process is as effortless for your business as possible.
In your application for a VAT loan, you should include your contact details, marital status and the name and contact details of your company. A VAT lender will contact you if they require more information, e.g. regarding the financial status of your company.
The age of your company will be taken into account during the application process, in general, your business must have been operating for at least 1 year to qualify for a VAT loan. If your company is younger than 1 year, you may wish to consider a start-up loan.
A VAT Loan is a type of funding used to pay outstanding VAT bills and to mitigate or nullify the impact or likelihood of incurring late payment finds from HMRC.
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