Posted: 13 / 06 / 2023
Article by: Leyton Jeffs, Group Chief Revenue Officer
Over the past 6-12 months, we’ve noticed that more clients than ever before have requested VAT loans, and there’s a reason for that.
Whilst tax loans are a fantastic way to spread the cost of a bill – whether that’s VAT, Corporation Tax or Self Assessment costs – our clients rarely seek this type of funding because they need help paying HMRC.
Instead, they’ve identified that the money they’ve saved for their tax bill can be put into the business to boost profits, outweighing the cost of the finance. Compared to other funding solutions, VAT Loans are considered to be a fairly cheap option, and often a personal guarantee isn’t required.
The top five reasons our clients have taken a Tax loan…
- Their business is growing, and they need to take on more staff to meet the demand
- An advertising opportunity has come up which can significantly increase awareness of the business
- Suppliers have offered a discount if they’re paid earlier
- They want to purchase a bulk order of their best-selling stock
- They can’t afford to pay their tax bill
In summary, using finance to pay a tax bill frees up cash, meaning the money saved can be invested in lucrative growth plans or kept to cover unexpected costs.
If you’d like to know more about this popular funding option, please give me a call, and I can talk you through the details. You can reach me on 07894 507425.