What are VAT Bill Loans?
A VAT bill loan is a specialist business credit line that pays your HMRC VAT bill. You can choose to repay the loan through monthly repayments or opt for a yearly repayment plan. You will repay the loan when HMRC reimburses you. You will pay back the money minus any fees and interest. We have compiled a useful list of all you need to know about VAT bill loans, so read on below so you can get back to focusing on the success of your business, as we have done the research for you!
What is a VAT Bill Loan Used For?
This is the best option for businesses with variable VAT liabilities. You will have access to a large sum of money for short periods. With a VAT loan, you can apply for the money you need for your business, even if you don’t need it right away. You can apply online using a unique tool called Fleximize. This service is free to use and involves two stages. The first stage asks you about your company’s finances, annual turnover, age, and other details. The second stage asks you about the type of business you have and what you’d like to borrow. When applying for a VAT bill loan, you must know the costs.
The cost of a VAT bill loan depends on your business’s needs and your company’s risk level. Typically, lenders offer competitive rates to businesses with a good credit history. If your business has a poor credit rating, you’ll need to provide more security and a higher interest rate. If your business is successful, it might still qualify for a VAT bill loan, but higher costs will be. The process of a VAT loan usually consists of two stages. The first stage asks you specific questions about the loan amount you’ll need.
A VAT bill loan can be more affordable than late payment fines. If you’re looking for finance for your business, contact HMRC today. A VAT bill loan will depend on the type of business. Secured loans are available for businesses that own assets that match the loan amount. If your business has no assets, a personal guarantee will suffice. If you have good credit and cannot pay your debts in total, a VAT bill loan will not hurt your business. But, if you don’t have collateral, you can always use a secured one.
Some benefits of business loans include:
- Working capital support
- Flexibility
- Convenient
- Easy to apply for
- No profit sharing
- No collateral required
- Reasonable interest rates
- Tax benefits
- Working capital support
- Multiple loan options
VAT Bill Loans: How Do You Apply?
There are questions on the application form based on;
- The size of your business,
- The age of your business, and
- The annual turnover.
The second stage will ask you to complete a questionnaire that will allow lenders to determine your business’s VAT burden. You’ll be issued a loan that will help you manage your taxes and keep your business running. The cost of VAT bill loans is based on the business’s risk level. The amount you must repay will depend on the risk level of your business.
However, if your business is financially sound and has a good credit score, the lender will be more likely to approve your application and provide you with an appropriate VAT bill loan. You can then use your VAT bill loan to pay for the costs. If your credit is terrible, a VAT bill loan may be the best option for your business., therefore, a VAT bill loan can help you finance your VAT bill. If you’re unable to pay on time, a VAT loan may be the best option. Its flexibility will help you get the funding without compromising your credit score. You can also use the same financing method for other expenses.
This type of financial assistance is suitable for variable or fixed VAT businesses. The application process can take up to three hours and can be completed online. The risk level of your business determines the cost of a VAT bill loan. The higher the risk, the lower the total amount you will need to pay. But the good news is that there are options for businesses with bad credit.
VAT Bill Loans; How can they help my business?
It can solve your cash flow problems and avoid bankruptcy. The application process is simple: it takes two stages. In the first stage, you enter details about your business. You’ll be asked to answer questions based on the amount of your ideal loan, your annual turnover and your age. You will also be required to provide security. If you don’t have enough collateral, you can use a secured one.
Funding options discuss obtaining business loans with bad credit in more detail here.
VAT Bill Loans:
Business Loans in the UK |
|
Company |
Pros |
Restrictions |
Min Turnover |
Available Amounts |
Available Terms |
|
Nationwide Finance |
Direct funder – not a broker
|
|
No minimum |
£8,000 – £500,000 |
1-5 years |
|
Funding Circle |
Fast, hassle-free business finance from £10,000 to £500,000 at competitive, fixed rates
|
n/a |
£25,000 p.a. |
£10,000-£500,000 |
|
|
Tide |
They will run pre-eligibility checks, without affecting your credit score
|
n/a |
Varies |
£500-£15,000,000 |
|
|
Fleximize |
4.9/5 Trustpilot rating |
Must be a limited company with 6+ months of trading |
£120,000 p.a. |
£10,000-£500,000 |
|
|
Capify |
Superfast lending |
Must have a min of 1 year trading |
£120,000 p.a. |
£5,000-£500,000 |
|
|
YouLend |
Europes largest revenue finance provider |
Must take on a min of £3,000 per month of card transactions |
£3,000 sales per month |
£3,000-£1,000,000 |
|
|
Cubefinder |
No penalties for early or late repayments |
Only available to Limited companies in England/wales |
£50,000 |
£5,000-£100,000 |
|
|
Love Finance |
Lender & Broker |
Must be a limited company with 2+ years of trading |
£25,000 |
£5,000-£500,000 |
|
Other useful links about loans:
Understanding Small Business Loans
What is a Personal Guarantee?
Manufacturing Business Loans
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