Using a short loan to pay corporation tax is a cost-effective way to protect cashflow and resources. Using a finance facility spreads the cost of a tax bill and increases your companies spending power, which can allow for growth and expansion. For this reason, tax loans are becoming increasingly popular, freeing up a business’s cashflow whilst meeting the demands of HMRC on time.
What are the Benefits of a Business Tax Loan?
Easy to arrange facility
Unsecured Lending, subject to Underwriting and Secured lending (depending on the Loan value)
Fixed monthly repayments available from 3-12 Months
Quick Decisions, usually within 24 hours
Protects existing bank facilities
HMRC receive payment on time, meaning no penalties
What are the Lending Criteria for a Business Tax Loan?
For businesses trading for a minimum of 6 months or more and have a minimum monthly turnover of £5,000
Minimum borrowing of £5,000 and up to £500,000
3 to 12-month repayment terms
Our Business Tax Loans are well-suited to covering the cost of an urgent corporation tax bill or VAT payment. We find that many small businesses spend the money set aside for these bills due to cash flow issues and so turn to a Tax Loan to fund the bill payment.
Although VAT bills typically call for a large payment each quarter, many SMEs find it easier to pay this on a monthly basis as it provides more stability to cash flow. Similarly, with corporation tax, this is a large annual payment which is easier to pay monthly over a 12 month period.
What information do we require to secure you a Business Tax Loan?
3 months of business bank statements
The most recent set of management accounts, if available
A summary of your last 12 months' revenue, broken down by month
Full set of Accounts if established over 12 months and lodged to companies house
Depending on the above information submitted, a Lender may ask for further information.