Finance Guide: Finance for VAT and Tax PaymentsPublished on 10th May 2016 2016-05-10T10:19:07+00:00 - Last update on 9th December 2019 2019-12-09T14:04:57+00:00
VAT and tax payments can often take businesses by surprise, whether the bill is due sooner than expected or larger than the business estimated. These situations can be dangerous – if the business doesn’t have enough working capital to pay the bill straight away, they can face heavy penalties for late payments. January is an especially difficult time for many businesses, as costs can pile up with quarterly VAT bills, rent, early payment of staff, and invoices paid late due to buyers going on holiday.
How can finance help?
The most important thing is for you to pay what you the business owes as soon as possible, and business finance can help. An ideal plan is to set up a business overdraft beforehand that you can draw on when unexpectedly large bills appear. If your business doesn’t have one, however, there are many other finance options that can help.
There are a range of situations in which you can use business finance – HMRC tax bills, quarterly VAT, corporation tax, and more. The types of finance that are best-suited for these situations are ones that will give you the funding you need quickly: short-term loans, bridging loans and overdraft alternatives are the most common solutions for funding VAT and tax bills. All offer shorter repayment terms than other types of business finance, and act as a way to bridge gaps and cover shortfalls in working capital when large bills become due.
Making sure you have the right finance for your business is complex and can often be confusing.
There are so many options that can seem very similar, but which when reviewed closely can be very different in terms of monthly payments, overall costs, up-front fees and terms and conditions.
If you’d like to talk to one of our Business Finance Specialists:
Call us on 020 3637 2455
Or email us on [email protected]
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