Business VAT loans enable your company to secure finance on a short-term basis in order to settle any outstanding VAT bill. Some lenders will settle your VAT bill with HMRC directly, while others will provide you the funds to do so. You will then repay the amount over a set period of time, which may vary depending on your choice of lender.
Additionally, the lender you select may also determine whether your VAT loan is secured or unsecured. A tax bill loan can be used as a form of rolling credit, ensuring a business has access to funds on a more regular basis, which should help to mitigate against the nasty surprise of any unforeseen VAT bill. A business VAT loan is repaid over an agreed period of time, with interest to pay on top of the initial amount.
Those interest payments can soon stack up, meaning that although this form of funding may seem like a flexible solution in the short term, the long-term effects must also be taken into account. With that in mind, here at Liberis we offer an alternative to the traditional VAT bridging loan in the form of our Business Cash Advance.
It too provides much-needed capital in the immediate term, but comes without the drawbacks of fixed deadlines or penalties for late payments to Liberis, as you pay us when your customers pay you.