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VAT loans
Keeping on top of HMRC payments and filing accounts is standard for any sized business. All companies must file correctly and ensure payments are made promptly to avoid any penalties. Businesses will allow for these payments. But occasionally, where calculations might have differed slightly for example, there may not be enough funds available. Should you find yourself in this position, it might be a case of dipping into your cash reserves or seeking alternative finance options.
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Funding for VAT and tax payments
There are various ways you can pay your VAT and tax without external funding, either quarterly, annually, monthly or opting in to different schemes depending on the industry and size of the business. We have found companies typically prefer VAT payments to be paid quarterly with corporation tax annually. Any business can incur additional costs. For example, if there has been a recent change in the supply chain or an error in company financing. Unexpected financial pressures can seriously affect a company's business if there's no contingency plan in place.
What is a VAT loan?
To keep to HMRC’s deadlines without jeopardising cash flow, many businesses seek to borrow the necessary funds, allowing the flexibility to pay bills on time while spreading the cost over a longer period. A lender will happily support a business with its tax payments, although it's worth applying before a tax bill is overdue. This is because there is less risk of missing your HMRC payment and being penalised.
Bank loans are often unattainable for small business owners, due to the length of time they take to process, so many businesses turn to alternative lenders like Fleximize. We provide fast funding and flexible finance solutions to help with upcoming tax bills by splitting the cost into more manageable monthly repayments. If you’re interested in how to apply for a VAT loan to cover your tax obligations, read the essential details below.
What is VAT financing from Fleximize?
Finance from Fleximize has helped many businesses spread the cost of tax payments, including SMEs in the retail, hotel, construction, restaurant, and brewing industries. Our fast application process means you could receive the funding you require in as little as 24 hours. We offer:
VAT and tax loans of £10,000 – £500,000
Competitive interest rates starting from 0.9% per month
Quick and easy online application with minimum paperwork
Approval to deposit in as little as 24 hours
Interest calculated on the outstanding balance, not the initial loan amount, giving you clarity and fairness in your repayments.
Top-ups and repayment holidays available with all loans
No hidden fees or early repayment penalties
Exclusive discounts on industry-leading business services from our B2B partners
Securing funding couldn’t be easier. We look at your company's overall performance, not just your credit score. If your company can demonstrate solid financial growth and has been trading for at least six months, we would love to hear from you. When you’re ready, hit apply or give us a ring on 020 7100 0110.
What can I use a VAT loan for?
Our VAT funding can be used in various ways to help spread the cost of VAT and tax bills to avoid late payment fines. Typically paying for a VAT bill is a big upfront purchase, then reclaiming funding back by HMRC will take about a quarter of the tax year - this is the main reason why businesses will need to bridge the gap of cashflow over this period of time.
VAT payments involve more than just your regular quarterly payments; they affect other areas of your business, too. Whether you're buying a commercial property, investing in accountancy software, or even securing an EU base to serve your customers outside the UK better, Fleximize’s products are designed to fit into each business’s needs. Read on for in-depth examples of loan usage and if you are eligible to apply.
VAT on commercial property
The sale or lease of a commercial property is generally exempt from VAT, but there are some circumstances where VAT may be charged. For example, the standard rate of 20% is applied when the property is less than three years old. A landlord can also charge VAT if the property has been renovated or refurbished to recover the associated costs. If you want to expand your business with a new commercial property on which VAT is charged, a tax loan from Fleximize could help cover the cost until the VAT can be reclaimed.
VAT reverse charge
The VAT reverse charge for building and construction services requires that customers or a company that receives services pay VAT directly to HMRC rather than the supplier. This policy has always been a concern for small businesses as it impacts cash flow, with the funds usually set aside for VAT no longer available for emergencies. If you’re looking for a quick lending solution to avoid a cash flow gap, read how Fleximize can help.
Securing a warehouse in the EU
Buying or renting a warehouse space in the EU to operate a distribution base poses some challenges. You may see some lengthy port delays and slow fulfilment times, so it might help to postpone VAT bills, as normally nothing is paid until the goods are sold to the customer. However, there are monthly fees to consider too, such as mortgage or rent, operating expenses and maintenance costs. In addition, UK businesses must register for VAT in the country where goods are stored. If your business goal is to operate in the EU, you can get flexible funding through Fleximize.
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Does my business qualify for a VAT and tax loan?
Fleximize looks to help as many businesses as possible, providing that repayments are affordable and a loan will be of benefit. Whatever the outcome of your application, you will receive a decision within 24 hours of submitting your documents so you can prepare for your business’s future. Regardless of the size or industry, you can apply with Fleximize if:
- You are a registered limited company or LLP
- You are UK-based, and at least one director lives in the country
- You’ve been trading for at least six months
- You have a minimum monthly turnover of £5,000
We can also consider your application if you’re a sole trader or non-limited partnership with less than four partners and you’re looking for a loan amount of £25,000 or more.
How much will my tax loan cost?
We provide tax and VAT loans with interest rates from 0.9% per month with no hidden fees. Unlike other lenders, we don’t penalise businesses for early repayments. Our Penalty-Free Promise means you can pay less interest overall by settling early without extra charges.
If you’d like an estimate of what your loan could cost before applying, you can use our business loan calculator to instantly find out what your repayments could look like. If you’d rather receive a tailored quote, call us on 020 7100 0110.
Why choose Fleximize as your tax loan provider?
Fleximize can offer you the speed and flexibility you require to meet the demands of your business:
We’re hassle-free: You can apply in just a few minutes using our simple online application and receive funding in as little as 24 hours.
We’re flexible: We offer unsecured and secured options, top-ups, repayment holidays, and our Penalty-Free Promise so you can secure business finance that your needs.
We’re personal: You’ll be assigned a dedicated relationship manager to answer any questions during your application and ensure your VAT loan is fully tailored to your business's needs. If you return for another round of funding in the future, you’ll be welcomed by the same point of contact.
Customers love us: Our ‘excellent’ Trustpilot rating and case studies reveal how highly our clients value us. Our customers twice voted us the Best Business Finance Provider at the British Bank Awards.
How to apply for VAT finance
Ready to apply? Just complete our short online form to get started. If you pass our initial checks, a member of the Fleximize team will be in touch to take you through the final stages. Once we’ve received everything we need, you could be approved and receive your funds on the same day.
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