5 ways Finance for VAT and Tax can help your businessPublished on 1st May 2018 - Last update on 5th November 2018
Although tax is an inevitable part of running a business, making sure that you have the funds necessary to pay it on time can be difficult. The sums demanded may be higher than expected, causing long-term damage should it catch you when you’re least prepared. Regardless of this, HMRC will still expect the demand to be met, coming down hard on any business owner who fails to do so. That’s why applying for VAT and Tax Finance as soon as you’re aware that paying may become an issue is so crucial. Providing access to a range of business finance solutions that enable you to spread the demand out over time, VAT and Tax Finance offers you a means to get your tax responsibilities resolved on time without sinking your business. So, you’ve got a tax bill coming up or just received one, here are just some of the reasons for why you may wish to apply for VAT and Tax Finance.
- Access to a range of business finance products
- Access to a lump sum
- Suitable for a range of financial situations
- Quick to arrange
- Variety of repayment methods
What VAT and Tax Finance solutions are available?
By choosing to ease the strain placed upon your business’ finances by applying for VAT and Tax Finance, you could gain access to a wide range of products and spread out repayments over an agreed period. So if you’re worried about paying your business tax, the finance solutions could apply for include: Secured and Unsecured Loans, Overdraft Replacement, Merchant Cash Advance, Revenue Advance, Invoice Financing and Asset Refinance. Although tax may be the most loathed part of running any business, you have plenty of options available that’ll allow you get it resolved without hindering growth, sustainability or your ability to accept new key contracts.
How much money could I potentially borrow?
This depends on the type of product you’re hoping to apply for and how the funding is generated. Whilst Secured Business Loans offer you a maximum of £1,000,000, there are other products available that don’t impose maximum credit limits at all. Such products typically release funds to your business based on your past income, unpaid invoices or even the equity contained in your unencumbered assets (equipment, vehicles, machinery or property). Therefore, in order to make sure you’re able to receive funds you need, make certain that you’re clear on how money each product could provide and whether it’ll be enough to cover what you require.
How do I qualify for VAT and Tax Finance?
Many of the products on offer can be either Secured or Unsecured, making VAT and Tax Finance accessible to many UK businesses. If you intend to use a Secured agreement, note that this will require you to offer collateral in the form of unencumbered equipment, machinery, vehicles or property. Although such agreements tend to carry lower interest rates, this also means putting assets at risk of repossession by the lender should your business default. Meanwhile, with Unsecured agreements, you don’t offer collateral but they usually carry a higher interest rate that reflects the amount of risk the lender is accepting.
In addition, you’ll need to submit a number of essential documents with your application, depending on the product. As well as proof of identity, such documents can range from current and past Bank Statements, Sales Reports, Profit and Loss Statements, Invoices, Collateral Documentation to Tax Returns. So, in order to increase the speed at which your application is processed, make sure that you’re clear on which documents are required by the lender and get them ready beforehand.
How soon could an agreement be established?
Depending on the product and the complexity of the request, some VAT and Tax Finance agreements could be established in as little as 48 hours. This is great news, especially if the demand has caught you off guard, since it may mean that you won’t need to compromise on paying your operating costs, settling other expenses or even accepting a key contract from one of your clients. The ability to maintain and grow your business is back in your hands. Just be certain to read through all document provided by the lender to ensure that the application process runs as smoothly as possible, without the lender need to make return calls over missing documents and wasting precious time.
How are agreements repaid?
Again, this all depends on the type of product you’ve chosen to finance your tax bill with. Although Fixed Monthly Repayment schemes which require you to repay a set amount at the end of each month are the most common, there are also other repayment schemes available. These include Flexible Monthly Repayments, Deferred Payment or using the money owed to your business in unpaid invoices. Each of these schemes works in different ways, providing your business with room to manoeuvre. Just make sure that you understand how each of these schemes work before submitting your application.
Thinking about financing an upcoming tax bill?
For many UK business, paying taxes on time can prove problematic, causing a number of negative repercussions which may affect their long-term sustainability. If you’re expecting to receive a tax bill in the near future, making sure that you’re prepared is essential. However, there may also be times when it catches you off guard, demanding a sum you may not possess or cannot afford to let go of. As such, applying for VAT and Tax Finance could be what you need to allow you to react quickly and reduce adverse consequences. But with so many products available, how can you be sure that you’re making an appropriate decision, and in such a short time? If you’ve got a tax demand that’s affecting your finances and ability to operate, apply for VAT and Tax Finance today or find out more with Rangewell.
Share this article
Discover your range of finance. Every type of finance for every type of business.
Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.Find Funding