Need help repaying your APNs?

Need help repaying your APNs?

January 3, 2017

Facing scrutiny from the British public, HMRC is under ever-growing pressure to ensure UK businesses are tax efficient. As a result, more and more business owners are facing unexpected tax bills. Accelerated Payment Notices (APNs) can pose a serious issue for many businesses, regardless of whether you’re big or small, and require your urgent attention.

APNs are cash sums demanded by HMRC and which are usually expected to be paid within the region of 90 days. The sum is calculated based on the amount of tax that your business has outstanding, from a period of up to 6 years. As such, APNs can easily take a large chunk of the business owner’s capital, causing serious issues for your business’s long-term sustainability.

It can be a major concern for your business, creating a lot of stress and consuming vast amounts of time. However, there are ways you can ease the burden and make it much more manageable. Rangewell can help source a variety of finance solutions that can help reduce the unexpected effects of receiving an APN, granting you fast access to finance. A few options that are open to you include loans, asset refinancing and merchant cash advances.

Loans:

With a loan, you can borrow from £5,000 up to as much as £1,000,000, and it comes as either secured or unsecured. Secured loans boost the lender’s confidence to offer you larger sums by using personal assets, such as the borrower’s home and equipment. If a business fails to repay the loan the lender can seize assets to recover costs.

Meanwhile, unsecured loans aren’t secured using assets but, instead, require you to express a commitment to repay the loan in due course. You’ll also need to demonstrate, in detail, your business’s ability to afford the monthly repayments.

Merchant cash advance:

This method of finance requires your business to have Chip ‘n’ Pin devices or other forms of card payment technology. To apply for, and receive, a loan you’ll be required to present business reports detailing your clientele’s latest card transaction activity for 2 consecutive months or more, depending on the lender. This is to demonstrate the reliability of card transactions made by your customers. The subsequent loan can be repaid in two ways, either through fixed monthly repayments or via a percentage of your future monthly card sales.

Asset refinance:

A potential lender may offer you a lump sum in the region of 70% of the asset’s total worth. Note that the asset’s worth is subject to depreciation, depending on its age and how much usage it has seen. After the lender transfers the sum directly into your account, in order for you to pay the APN, they acquire ownership of the concerned asset. Once you have completed the monthly repayments to the lender you’ll regain ownership of your asset.

At Rangewell, our values are simple – we’re on your side.

We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.


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David Harrison

David Harrison

Content writer