Case Study – VAT Finance Loan
To raise £50k for drawdown the same day to enable quarterly VAT payment to be made. The request for finance was time critical with HMRC unwilling to extend time to pay arrangements.
Speed was the essence of this request with the prime objective being to get funds released the same day as the application was made.
Often when it comes to financing tax, VAT or PAYE mainstream lenders are reluctant to lend as any arrears of tax are considered a risk flag. Regardless of this there are often very good reasons why a company has come to be in arrears, from extended debtor days to expansion eating into cash reserves.
The loan amount requested was £50k. Traditionally commercial lending at this level requires tangible security. There was not the time available to arrange security, therefore the solution needed to encompass the speed and leniency to lend without tangible security.
The Finance Solution
Using our range of commercial lenders we took authority from the client to liaise with their accountants. This meant we could talk direct to the accountant, obtain the accounts, VAT returns and financial information needed without having to concern the client.
Working direct with the accountant meant we could work quicker. Getting the information we needed first time meant we could get the offer of finance to the client quickly.
A loan of £50k was arranged with drawdown made the same day. The loan period was 9 months to ensure that future VAT payments could be budgeted for.
This deal was completed in September 2015.
Tax / VAT / HMRC / Arrears Loans