What is VAT and Tax Finance?Published on 20th April 2018 - Last update on 5th November 2018
Worried about an impending tax bill? Although you may be able to roughly predict it’s arrival and how much it may ask for, settling the demand on time can still prove challenging. This is especially true if you run a developing SME and need to spend the money elsewhere. Nevertheless, VAT and tax is part and parcel of running any business, with HMRC taking a tough stance of anyone who fails to settle their tax obligations on time. However, there is a way to keep the taxman at bay whilst ensuring you still have the ability to achieve your short and long-term goals. By applying for VAT and Tax Finance you could borrow the funds that you need without placing further stress upon your working capital. So if you need help coping with your business’ taxes, here’s what you need to know about VAT and Tax Finance.
- Why apply for VAT and Tax Finance?
- What types of finance are available?
- How much could I borrow?
Why should I apply for VAT and Tax Finance?
As your business continues to grow and hopefully make a profit, it’ll inevitably start incurring tax. Over time, this all mounts up and when you eventually receive your tax bill you might be looking at large which could put a hole in your finances. Although it’s tempting, you cannot afford to put tax at the bottom of your list of priorities. You’re given a set amount of time to settle the demand, and if it’s not you met you’ll either receive a court summons or an Accelerated Payment Notice. The trouble is that you’ll no doubt have to wrestle with your operating costs, expenses, growth projects and other short and long-term goals for the cash.
However, applying VAT and Tax Finance early on means you could gain access to a wide range of business finance solutions that will allow you to borrow the funds you need to resolve your tax affairs, therefore, sparing you the need to choosing between paying your taxes or running and developing your business.
Types of finance solutions available
What makes VAT and Tax Finance so useful for dealing with your business’ tax affairs is that gives you access to a wide range of business finances solutions. Each of these solutions works in their own unique way to provide external funding, enabling to you source an appropriate finance agreement that works around how your business operates. By choosing to explore what’s on offer by applying for VAT and Tax Finance, some of the products you could benefit from include Secured and Unsecured loans, Overdraft Replacement, Merchant Cash Advance, Revenue Advance, Invoice Financing and Asset Refinance. Therefore, choosing to support your tax arrangements with VAT and Tax Finance presents you with the necessary tools for resolving your taxes without adding pressure to your working capital and stalling growth.
How much money could I borrow?
Another aspect of VAT and Tax Finance which makes it so useful is that it presents you with a variety of ways to borrow the funds that you require. As such, the amount that you could borrow depends on your chosen business finance agreement. Plus, depending on the complexity of your request and financial situation, some finance solutions could be arranged in as little as 48 hours. So, whilst Secured term loans present you with only a set range (£5,000 - £1,000,000), other finance solutions could provide external funding based upon your past income, monthly receivables or the equity contained within any unencumbered assets (equipment, machinery or vehicles). Therefore, given the range of business finance solutions available, there’s no set limit determining how much you could borrow by weighing up your options with VAT and Tax Finance.
Looking to resolve your business’ tax affairs?
Tax is an inevitable part of running a business, yet making sure you’re prepared isn’t always a straightforward matter. You may have ideas for how you want to spread capital around your business. Regardless, from the moment you receive the tax demand you only have a limited time to pay it. Plus, with HMRC taking a dim view on anyone who doesn’t pay tax obligations on time, your business’ finances are under more pressure than ever when it comes to this matter. That’s why applying for VAT and Tax Finance as soon as you’re aware of an issue is crucial for your business’ long-term sustainability. So if you got an impending tax demand and would rather avoid leaving a hole in your finances, apply for VAT and Tax Finance today, or find out more with Rangewell.
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