Although we all know we need to periodically pay VAT and business taxes, these bills can often come at a time when cash flow is critical and working capital needs preserving. This is why VAT and business tax loans have started to become more popular to help businesses to even out their cash flow. Below we have explored some of the leading providers for business tax loans, VAT loans and property VAT loans.
Companies are ranked in no particular order.
| Company | Min Loan Amount | Max Loan Amount | Max Term |
|---|---|---|---|
| BloomSmith | Not stated | £20 million | Not stated |
| Bluestar Leasing | £25,000 | Not stated | 12 months |
| Braemar Finance | Not stated | Not stated | 24 months |
| Just Cashflow | £10,000 | Not stated | 3 months |
| Merchant Money | Not stated | £150,000 | 6 months |
| PFC Finance | Not stated | Not stated | 60 months |
| Proplend | £100,000 | £2 million | Not stated |
| Satellite Finance | £1,000 | £25,000 | 5 years |
| Time Finance | £10,000 | £50,000 | 3 months |
| Wesleyan Bank | Not stated | Not stated | 12 months |
| WestWon | £10,000 | Not stated | 3 months |
1. BloomSmith
- Offers VAT bridging loans
- Suitable for property, land or development purchases
- Short-term loan to cover the period to reclaim the VAT
- Quick turnaround within 48 hours
- Covers 100% of VAT costs
- Unsecured loan
- No charge on the property
- No impact on your mortgage
- Suitable for owner-occupiers, small to large developers
- Available in England, Scotland, Wales and Northern Ireland
Website BloomSmith VAT and Business Tax Loans
Read the full BloomSmith review
2. Bluestar Leasing
- Offers both VAT and business tax loans
- Spread the cost of VAT and tax bills
- VAT loan for a maximum term of 3 months
- Tax loans for a maximum term of 12 months
- Loans of both types from £25,000
- Minimum 2 years trading for VAT loans
- Minimum 5 years trading for tax loans
- Provides quick decisions
- Funds can be paid directly to HMRC
- Complete an enquiry form and they will get back to you
Website Bluestar Leasing VAT and Business Tax Loans
Read the full Bluestar Leasing review
3. Braemar Finance
- Offers both business tax and VAT loans
- Tax loans term up to 24 months
- VAT loan terms up to 3 months
- Quarterly drawdown option available
- Simple and easy to arrange
- Fixed monthly repayments
- Competitive rates
- Can be paid directly to HMRC
- Helps to smooth the peak and troughs in cash flow
- Complete their online and they get in touch with you
Website Braemar Finance VAT and Business Tax Loans
Read the full Braemar Finance review
4. Just Cashflow
- Offers VAT loans
- Quarterly flexible loans
- Even out cash flow
- Fast application process
- Maximum loan term of 3 months
- Quarterly funding from £10,000
- Interest from 1.5%
- Repay by weekly or monthly direct debit
- Available to limited companies, LLPs and PLCs
- Apply online or over the phone
Website Just Cashflow VAT Loans
Read the full Just Cashflow review
5. Merchant Money
- Offers VAT and business tax loans
- Helps maintain working capital
- Short-term loans from 1 to 6 months
- Loans up to £150,000
- Tailored to your business needs
- No hidden fees or charges
- 24-hour approval
- Funds can be paid directly to HMRC
- Has a 90% approval rate
- Online application form
Website Merchant Money VAT and Business Tax Loans
Read the full Merchant Money review
6. PFC Finance
- Offers VAT and business tax loans
- Suitable for self-assessment, corporation tax, partnership tax and other tax
- Also suitable for VAT associated bills
- Helps to spread the bills
- Release working capital
- Standard terms are up to 12 months
- Longer terms are available for corporation tax for up to 60 months
- VAT bills split into 3 equal instalments
- Enquire online or by phone
Website PFC Finance VAT and Business Tax Loans
Read the full PFC Finance review
7. Proplend
- Offer property VAT loans
- For commercial and residential property developers
- Minimum loan of £100,000
- Maximum loan of £2 million
- Up to 100% of the VAT due
- No minimum term
- No security charge
- Interest rates from 0.833% per month
- Can be combined with a bridging loan or commercial mortgage
- Available for properties in England and Wales
Website Proplend VAT Loans
Read the full Proplend review
8. Satellite Finance
- Offers corporate tax and VAT loans
- Fast loans that can be ready in 24 hours
- Minimum loan of £1,000
- Maximum loan of £25,000
- Terms of 1 week to 5 years
- Fixed monthly repayments
- Secured or unsecured loans
- Competitive rates
- Flexible loans
- Check online your eligibility or call them
Website Satellite Finance VAT and Business Tax Loans
Read the full Satellite Finance review
9. Time Finance
- Offers VAT loans
- Flexible loans
- 3 month arrangements
- A personalised approach to small business loans
- Arrangement fee applies
- Minimum loan of £10,000
- Maximum loan of £50,000
- Even out your cash flow
- Available to businesses with a turnover above £25,000
- Apply by contacting them by phone or email
Website Time Finance VAT Loans
Read the full Time Finance review
10. Wesleyan Bank
- Offers tax and VAT funding for SMEs
- Spread corporation or income tax bills over 6 or 12 months
- Spread quarterly VAT payment over 3 to 12 months
- Maintain working capital
- Fixed and manageable monthly repayments
- Unsecured loans
- Claims to have competitive rates
- Offer their own loans and act as a broker
- Apply online or call them
Website Wesleyan Bank VAT and Business Tax Loans
Read the full Wesleyan Bank review
11. WestWon
- Offers VAT loans
- Preserve cash flow
- Spread your VAT bill over 3 months
- Fast and simple loans with acceptance within 24 hours
- Fast payment direct to HMRC
- Fixed monthly payments
- Dedicated loan team
- Claims competitive rates
- 95% acceptance rates
- Apply online or call them
Website WestWon VAT Loans
Read the full WestWon review
How does VAT and business tax loan work?
VAT and business tax loans are designed to help businesses to spread the cost of their VAT and/or business tax over a given period rather than paying for it in a lump sum to preserve working capital within the business. Generally, VAT loans are available for periods of 3 months in line with the VAT periods and can be drawn down quarterly as your VAT is due. Tax loans are generally for 6 or 12 months which are in line with the tax deadlines for payments, although some corporation tax loans are available for longer periods.
Many providers will pay the loan directly to HMRC on your behalf and you will repay the loan in fixed monthly instalments over the agreed term.
Most VAT loans are designed to cater for businesses that make regular VAT payments, however, there are some VAT loans available for property where VAT is applicable. These loans offer 100% funding to cover the VAT owed as most property finance doesn’t include the VAT costs.
How much can I borrow?
VAT and business tax loans can generally offer from several thousand pounds and most providers do not set an upper limit but will review the amount offered on application based on your status. VAT loans for properties can be much higher with loans of up to £20 million.
All loans will be subject to an application and approval process where the loan will be subject to your business status.
How much will VAT and business tax loans cost?
There is limited information available about the costs of VAT and business tax loans as most providers do not publicise their interest rates. Some providers charge an arrangement fee and there may be some brokerage fees if a broker is used.
How long can I borrow money for?
VAT loans are typically only for 3 month terms in line with the quarterly VAT payment arrangements but some providers may offer longer terms. Some providers offer a drawdown facility to allow businesses to utilise the loan facility each quarter if they need it.
Business tax loans are typically for 6 or 12 months in line with the tax payment schedules for businesses, however, some tax loans especially for corporation tax may be offered over longer terms up to 5 years.
How to apply for a VAT and business tax loan?
Many VAT and business tax loan providers allow businesses to enquire or apply for a loan on their websites or will provide a phone number to contact them to discuss your needs. Many providers offer a fast turnaround on these loans and can get the funds to you or HMRC quickly after a short application form and checking process.