Not all of us who run SMEs are financial wizards or can afford to employ a finance department.
We all start off with great intentions. It’s commonplace to have separate business bank accounts with payments ‘squirrelled’ away for savings, tax or VAT. But sometimes those accounts can end up being used for other aspects of your business (often against one’s better judgement) and shortfalls can occur. Of course, financial mismanagement is not the only reason why funds may not be available for your tax bill – invoices can frequently be paid late, creditors can go out of business etc.
Similarly, companies may often find themselves with opportunities, perhaps for growth, that they simply can’t take due to pressures from a pending bill from HMRC.
At SME funding UK, we understand how difficult and potentially detrimental it can be to find a lump sum to pay your annual tax bill, or indeed your quarterly VAT returns which is why we devised our very-popular Tax Funding service. It is possible to use finance to pay these returns with a simple monthly repayment plan. Financing can also be beneficial in avoiding fines for late payment as heavy penalties can be implemented. Many traditional banks do not lend for VAT or Tax debt.
The great benefits of tax funding include:
- It helps companies retain working capital
- Excellent rates are available
- It helps with any possible cash flow issues
- It’s very simple to arrange and decisions from funders are normally very quick
- Fixed, monthly repayments are made directly to HMRC
- It helps you to maintain a good credit history
Financing your tax or VAT takes the pressure off you and your business allowing you to manage your cash flow more effectively
So what do you need to qualify?:
- For VAT funding you need to apply less than 30 days from the payment demand. Repayments can be spread over 3 months.
- For self-assessment and corporation tax you need to apply less than 60 days from the payment demand and you can choose monthly instalments up to 12 months. You can refinance if you’ve already paid within this timescale.
Talk to us today and get the right funding for your business, right now.
If you would like any further information, please do not hesitate to get in touch.
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SME funding UK Ltd is authorised and regulated by the Financial Conduct Authority (772970) and we are a Member of the National Association of Finance Brokers (M/0122/16)
We are also registered with the Information Commissioner’s Office (ZA209808)
Please note SME funding UK Ltd are brokers and not funders themselves.