Applying for a VAT finance loan

Applying for a VAT finance loan

One question we often get asked is why does a UK company come to us for a VAT finance loan as opposed to speaking to their High Street bank? And what is included when applying for a VAT finance loan?

The reasons we hear are always the same:

Banks take too long to get a credit acceptance

They ask too many questions

They charge documentation fees

And the nail in the coffin…they will turn us down

So for us to have a business, we have to offer a quick and simple service with: competitive rates, no documentation fees and high acceptance rates.

We do not need you to fill in a long application form. We can get started with:

What is your company name and registration number?

What is the amount of VAT finance you need?

We can internally give you a reasonably good indication if we will be able to get you a VAT finance facility and what other information we will require, within minutes.

VAT finance loan decisions within 24 hours

A lot of the financial information we need is normally in the public domain at Companies House. However, to get an agreed credit facility in place, our underwriters will / may need the following information:

Management accounts – depending on the size of your business.

Last three months business bank statements.

Directors home address, date of birth details. (The underwriters do carry out personal credit searches on directors)

Sometimes other information is required, for example, details on shareholders who hold in excess of 25% of the shares.

Speed of a credit acceptance is of high importance to us. We aim to always get a decision within 24 hours from when we have received full details. Clearly, at busier times of the year this does get stretched out to two days.

A simple, quick and easy paperwork process

Documents are emailed to you. Some of our finance providers also use an e-signature facility.

How is the VAT finance paid to HMRC?

Once the paperwork is in place, our funder will send the money directly to HMRC quoting your VAT registration number. Money goes to them on a same day payment.

Repayments quoted on our VAT loan calculator

The repayment you see on our VAT loan calculator is what you will pay. The funders either accept or reject your credit, they do not offer an acceptance to higher rates.

What about using VAT finance for a following quarter?

An average customer will use a VAT finance facility three times per year. Year on year, our customer retention rate is over 80%.

The great thing is once you have made the three-monthly repayments, the funder is getting a positive profile of your credit history. Also, from an underwriting perspective, they have already undertaken a range of the checks needed. They may well ask for up to date bank statements or management accounts, but a lot of the “Know Your Customer” paperwork will have been sorted previously.

And finally…

It’s a competitive market, most of the time we will be more competitive than most of our competitors. We very rarely lose business due to rates!

Contact Us

For more information on applying for a VAT finance loan or for a free no obligation quote, please give a member of the VAT Loans team a call on 01494 956 871 or email us on [email protected].