Loan Amounts and Funding Terms
Loan Terms
Loan terms between 3 months and 1 year with fixed monthly payments
Loan Amounts
Loan amounts over £2,000
Eligibility Criteria
Loan Purpose
Do you have a HMRC VAT bill?
Company Status
Are you a UK registered business?
Trading Time
Have you been trading for at least 12 months?
VAT Loans
VAT loans are a type of business funding used to pay VAT bills and reduce the impact of costly late payment fines. Using finance can spread the cost of a VAT bill and improve company cash flow, which in turn can allow for increased competitiveness, growth and expansion.
We assist VAT registered companies and borrowers to increase their spending power by obtaining the best funding options and facilities, quickly and efficiently, whilst ensuring your company requirements are fully catered for.
How to apply for a VAT loan?
Quick Applications
Fill out our application form in less than 5 minutes
Dedicated Support
Your application will be allocated to your dedicated case manager
Quick Responses
Your case manager will be in touch within 4 working hours
Minimal Paperwork
They will collect all required documents to process your application
Quick Decisions
You will receive a decision within 48 hours in most circumstances
Fast Payouts
You will receive your funds within 48 hours of acceptance in most circumstances
The Benefits of VAT Finance
Flexible Terms and Borrowing Amounts
VAT loans are a flexible solution to financing your HMRC VAT liabilities.
Borrowing amounts are restricted to the value of the VAT bill.
VAT loans can be taken on a rolling basis every quarter.
Speed of Approvals
VAT finance applications and approvals are quick to process.
With no need for charges on assets or debentures, decisions are made based on you meeting the lenders eligibility criteria.
Many lenders will approve applications within 24 hours, provided that all the required documents are provided at the time of application.
Reduced Paperwork
As you are not using security or collateral when making the application there is less paperwork that needs to be completed.
In order to apply you only need your HMRC VAT bill, business bank account statements and business financial reports such as your profit and loss statements along with proof of identity.
No Risk to Assets*
Loans on an unsecured basis do not use collateral as part of the credit agreement, meaning your assets are not at risk in the first instance. Instead the loan is approved on the basis of your financial health and credit rating.
*In most cases a personal guarantee is required to secure the finance to protect the lender in the event of a default.
Luckily, there are a range of personal guarantee insurance products available for businesses using unsecured finance.
With HMRC imposing a fine of up to 15% of your bill for late or non-payment of VAT bills, the use of a VAT loan can reduce the impact and increase your spending power.
Given the current economic climate, we feel that offering fixed monthly payments over 3 months to 1 year terms, can give you a vital cash injection, which in turn can give you the competitive edge by allowing existing funds to be used elsewhere within your organisation.
If your company does not have enough time to pay it's VAT bill, the use of a finance facility can be tax efficient funding, as your repayments may be offset against taxable profit.
RLA Capital can offer specially tailored VAT loans designed to help your company manage its cash flow more effectively.
With a wide range of versatile funding solutions available, we can help source the most suitable funding facility to meet your requirements with access to some of the best facilities on the market we feel we can be competitive against any genuine quote.
View our full range of business finance facilities here
Frequently Asked Questions
Related Resources
How VAT loans can benefit your business
You can apply for [VAT Finance] if you can't pay your VAT on time, so you don't incur late payments penalties.
This cost alone can increase your accounts payable, in addition to any current expenses your company is already liable for.
Click to read more
Do You Need to Be VAT Registered?
Knowing when to become VAT registered with HMRC is an important step in the life cycle of any business.
Being aware of the requirements set by HMRC is an essential part of making sure your business meets all the necessary criteria and doesn’t incur fines, penalties or unexpected liabilities.
Click to read more
New VAT late Payment Penalties and Interest Charges
From 1st January 2023 there will be a new late payment penalties and interest rates introduced by HMRC.
For late submission of VAT returns there will be a new points-based system, which will replace the current “default surcharge”.
Click to read more