Formulate a Contingency Plan for the Unexpected

Formulate a Contingency Plan for the Unexpected

/in /by

In business, anything can happen. You can have a plan in place, but the unexpected can always occur. Being able to handle the unexpected is crucial not only to survive but to thrive as a business owner. The key is being prepared. In this blog post, we will discuss how you can formulate a contingency plan for the unexpected.

  1. Identify Potential Risks

The first step in formulating a contingency plan is identifying potential risks. This includes any potential threats to your business that could disrupt operations, such as natural disasters, cybersecurity breaches, supply chain disruptions etc. Be proactive and take all possible measures to minimise the risk of such incidents happening.

  1. Create a Plan of Action

Once you have identified potential risks, the next step is to create a plan of action. This plan should outline the steps that need to be taken in the event of an unexpected event. Make sure this plan includes critical components such as communication channels, emergency response, and a recovery plan.

  1. Assign Responsibility

Make sure that each member of your team understands their role and responsibilities in the event of an unexpected event. Assign key personnel or teams to handle the different critical components of your plan. Creating a contingency plan is not just about having a plan written down somewhere, but about ensuring everyone is ready and prepared to act when necessary.

  1. Test Your Plan

One of the most important aspects of any contingency plan is testing. Regular testing of your plan helps you identify any gaps or shortcomings and ensures that the plan is still effective and relevant. Testing should be done at least twice a year.

  1. Update Your Plan

Finally, as your business environment evolves, so should your contingency plan. Review your plan regularly and make any necessary updates. Keeping your plan up to date ensures that it remains effective and continues to mitigate potential risks to your business.

Contact Us

Formulating a contingency plan can be daunting, but it is essential in helping your business survive and thrive in the face of the unexpected. Identify potential risks, create a plan of action, assign responsibility, test your plan, and update it regularly. To find out more about how you can formulate a contingency plan for the unexpected. Reach out to our team via our contact page, call us on 01494 956 871, or email us at [email protected].

business loan

Analysing VAT Loans and HMRC VAT Time to Pay (TTP) arrangement

/in /by

VAT Loans and HMRC VAT Time to Pay arrangements. Whilst both are great ways to relieve cashflow pressures in your business, it may not be clear which is the best option for you. In this article, we’ll compare a VAT loan to an HMRC TTP agreement. Whilst our domain name indicates that we specialise in VAT loans, we’ll strive to present an impartial perspective.

What is a HMRC TTP arrangement?

If you owe debt to HMRC—whether it’s PAYE, Corporation Tax, personal tax, or VAT—you can contact HMRC directly to pay the tax bill over a period of time. This arrangement can span from one month to five years, depending on the type of debt and your circumstance. Typically, you’ll make the request over the phone, and an HMRC representative can often finalise the details during the call. Once you agree on the terms, HMRC will establish a direct debit and send you a confirmation letter. So, if the process is so straightforward, why doesn’t every company choose this option?

Benefits of TTP arrangement

  1. No personal guarantee needed. When you sign a TTP, HMRC do not require a personal guarantee. For many of our customers – excluding larger companies and certain professions like architects, accountants and solicitors – we would require a personal guarantee.
  2. The HMRC interest rates are lower than VAT loans.
  3. HMRC may grant a longer repayment term for the VAT bill, i.e. a period of six months to a year instead of three months when we arrange a VAT loan.
  4. Once you get through to HMRC, it can be quick for them to agree the facility. In comparison, a VAT loan may take 24-48 hours to arrange.
  5. HMRC do not carry out a credit check. They will not ask for management accounts, bank statements etc.

Issues with a TTP arrangement and benefits to a VAT loan

  1. You may not be granted a TTP if you already have HMRC debt elsewhere or an existing TTP in place.
  2. Often, just getting through to HMRC can be challenging, stressful and time consuming.
  3. There are times when it makes sense to pay more for a VAT loan, such as when you chose not to use a TTP arrangement now to have it as an option in the future.
  4. When HMRC charge your company interest for late payments, it’s considered a penalty. In summary, your company cannot claim Corporation Tax relief on the interest you pay them. However, you can reclaim Corporation Tax relief on interest paid on a business loan, effectively making a VAT loan 25% cheaper.
  5. HMRC will send yet another ‘brown envelope’ out to you with details of the repayments being taken via direct debit. Many employers do not like this.
  6. Funders of leasing and business finance look carefully at bank statements for regular rounded payments to HMRC. For example, £2,000.00 going out every month to HMRC on the 1st of the month falls outside of normal PAYE and VAT repayments. This can potentially lead to you getting refused for loans elsewhere. The funder would also see a fixed regular repayment going out to a finance company like ours. They would also know there is a loan in place.
  7. Once you have paid your VAT loan in full and on time, it is a lot easier to get a secondary loan facility since funders will see a positive repayment history.
  8. The timing of your call can impact the fines you incur. The fine starts at 2%, but rises to 4% of the bill if you have not paid after one month. Currently, the interest HMRC charge is 7.5%. (Bank of England base rate plus 2.5%) The best solution is to either pay them on time or sort out a TTP arrangement prior to the bill being due. While you will still need to pay the interest, no fines will be applied.

For more information on VAT Loans, or if you’d like to discuss your options with us, please contact a member of the team on 01494 956 871 or email us on [email protected].

A Thorough Guide to Loan Documents Submission

A Thorough Guide to Loan Documents Submission

/in /by

Have you ever wondered what kind of documents you need to provide when applying for a loan? It can be a daunting task to figure out what needs to be submitted, especially if you have never applied for a loan before. That is why we have created this comprehensive guide to help you understand what loan documents are required and why they are important. In this article, we will cover a thorough guide to loan documents submission.

  1. Business Plan

One of the most important documents when applying for a loan is your business plan. This document should contain a detailed description of your company, your business model, your target market, and your financial projections. It is essential to show the lender that you have a clear understanding of your business and that you know how to make a profit. Your business plan should be well-written and easy to read.

  1. Financial Statements

When applying for a loan, you will need to provide financial statements that show the financial health of your business. These statements should include your income statement, balance sheet, and cash flow statement. They should be up-to-date and accurate so that lenders can evaluate your ability to repay the loan. Financial statements also show the lender whether you have enough cash flow to cover your operating expenses.

  1. Tax Returns

Tax returns are another crucial document that lenders will request, including personal and business tax returns. Most lenders require three years of personal tax returns coverage to evaluate your overall financial position. Business tax returns will be used to look at your business’s profitability, losses, and liquidity. If you don’t have everything filed on time, have a letter explaining why.

  1. Collateral Documents

Loan applications need to be secured through collateral documents. When securing a loan, lenders will request items like real estate titles, certifications such as insurance, or other assets titled under the borrower’s name. Collateral documentation supports the lender in case the borrower defaults on their loan.

  1. Industry-Specific Documentation

Finally, Industry-specific documentation may be required by a lender to verify further information. Some common requests include business licenses, permits, and certifications from regulating entities in fields where a license is a requirement. For healthcare businesses, certifications might be mandatory to ensure that the firm has a valid license to offer connected services. Make sure you research and understand any industry-related specifications relevant to your start-up or current business.

Contact Us

Applying for a loan can seem daunting, but having the necessary loan documents ready will make the process much smoother and increase the chances of getting approved. By providing a comprehensive business plan, accurate financial statements, and up-to-date tax returns, you can show the lender that you are a low-risk borrower. We hope this thorough guide has been informative and that you now know more about loan documents submission. Reach out to our team via our contact page, call us on 01494 956 871, or email us at [email protected].

Braemar Finance

HMRC VAT Financing For Solicitors

/in /by

This year in the UK,10,400 firms of solicitor’s will bill circa £50bn in fees and collect £10bn in VAT for HMRC. This is expected to grow to £53bn in 2025 and over £60bn in 2027. Even after taking into account input VAT, that is a massive amount of VAT paid to HMRC.

Whilst there may be mutterings that your finance teams are unpaid tax collectors, paying HMRC every quarter can sometimes be challenging. The more successful you are, the greater your billings, the more your quarterly VAT bill is. Added to this is the issue of work in progress. Your unbilled work does not attract VAT, but the wages and other associated business costs still have to be met very month.

Solicitors in the main are very diligent about paying their HMRC VAT bills on time every quarter. This is one of the reasons why VAT financing for solicitors is so popular.

So what is HMRC VAT financing and how does it work?

It is actually a very simple loan product that has been around for many years. Let’s take an example of a legal practice with a £50,000.00 VAT bill due on the 7th of November 2024.

Go onto our free VAT loan calculator on the VAT Loan page of our website. Put in £50,000.00 as your VAT bill. It will calculate exactly what the monthly repayment will be over three months, in this case, £17,618.33 per month, giving a total to be repaid of £52,855.00. We do not ask for your company name, we do not track your IP address, this is completely confidential.

Assuming you would like to proceed, we carry out a credit check and communicate back normally within 48 hours with a credit acceptance. A simple e-signature document is sent to you for signing. Our funder will pay HMRC on or before the 7th November using your VAT number as a reference. You then make three monthly repayments starting on the 7th December. Once the final payment has been paid on the 7th February that is the end.

Using the example above, can we just fund some of the VAT bill?

Yes, we can fund from £10,000.00 and you settle the difference. Our funder would look for confirmation you have paid the balance between the VAT bill and the loan.

What information is needed?

Last three months bank statements, latest full set our company accounts if you are filing abridged accounts at Companies House. Directors’ details and a copy of the VAT bill. Management accounts may be needed.

It is now after the 7th November 2024, can you still fund the VAT?

Yes, up to 14 days after your VAT period end. We cannot fund historic VAT.

I have paid the VAT but would like the cash back as working capital, can this be done?

Yes, some firms of solicitors prefer to pay their VAT bill and then take out a loan. As long as this is done within a couple of weeks of HMRC being paid, this can normally be achieved, subject to credit.

Do many legal firms fund VAT?

Absolutely. Historically, the VAT loan product was just developed for professions such as solicitors and accountants. Now our customers cover not just legal firms but most sectors of businesses.

Are personal guarantees required?

Often they are but this does depend on the size of your practice.

Please note, all loans are subject to credit, personal and or cross company guarantees may be needed.

Strategies to expand your business amidst economic uncertainty

Strategies to expand your business amidst economic uncertainty

/in /by

The current economic climate is uncertain and unpredictable, causing many business owners to worry about the future. However, amidst the chaos, there are also opportunities for growth and expansion. The key is to stay focused, be creative, and take calculated risks. In this blog post, we will discuss strategies that can help you expand your business amidst economic uncertainty.

  1. Explore New Markets

One way to increase your revenue and expand your business is by exploring new markets. Do your research and find out if there are untapped markets that you can target. For example, if you run a local restaurant, you could consider expanding your delivery services to neighbouring towns or catering to corporate events. Similarly, if you sell products in physical stores, consider launching an e-commerce website to tap into the online market.

  1. Diversify Your Offerings

Another way to expand your business is by diversifying your offerings. Consider adding new products or services that complement your existing offerings or target a different audience. This will help you cater to a wider range of customers and reduce your reliance on a single product or service. For example, if you run a clothing store, consider adding accessories or launching a separate line of clothing for a different age group.

  1. Build Strong Relationships

Building strong relationships with your customers, suppliers, and partners is crucial, especially in uncertain times. Make an effort to understand your customers’ needs and preferences and provide exceptional customer service. Similarly, establish strong partnerships with your suppliers to ensure a steady supply of products or materials. Building a strong network of contacts will enable you to navigate through challenging times more effectively.

  1. Implement Cost-Cutting Measures

Another way to expand your business amidst economic uncertainty is by implementing cost-cutting measures. Identify areas where you can reduce expenses without compromising the quality of your products or services. For example, you could negotiate with your suppliers for better prices or minimise energy usage by adopting energy-efficient practices. Implementing cost-cutting measures will help you achieve greater efficiency and profitability.

  1. Invest in Technology

Investing in technology can help you streamline your operations, reduce costs, and improve customer experience. For instance, you could invest in software that automates certain tasks or enables remote working. Similarly, you could use social media and other digital marketing tools to reach out to a wider audience. By embracing technology, you can stay ahead of the competition and drive long-term growth.

Contact Us

In conclusion, expanding your business amidst economic uncertainty requires a proactive mindset, innovative thinking, and a willingness to take risks. By exploring new markets, diversifying your offerings, building strong relationships, implementing cost-cutting measures, and investing in technology, you can position your business for long-term growth and success. Contact us if you require further insights into strategies to expand your business amidst economic uncertainty. Reach out to our team via our contact page, call us on 01494 956 871, or email us at [email protected].

HMRC loans

How can HMRC loans help you and your business?

/in /by

In this article, we delve into the intricacies of HMRC Loans, offering a comprehensive guide to navigate their process. Securing a bank loan can be a drawn-out, challenging task. Their lending policies often pose difficulties if you’re aiming to borrow merely £8,000 for a quarterly term.

For UK-based firms unable to pay their VAT bills and facing potential 15% HMRC penalties, relief might be on the way. Surprisingly, a variety of reasons lead companies to choose tax funding firms like VAT Loans.

This enterprise thrives on facilitating numerous small-profit, short-term loans – all having repayment durations between three months to a year. There are no hidden charges or document fees that banks usually levy for profit. Our system is straightforward and swift. Transparent documentation allows customers to decide without apprehension.

We require details such as the following:

  1. Your borrowing amount (£8,000 to over £1m)
  2. Repayment duration (Three months to a year)
  3. Preference for initial direct debit repayment timing
  4. Your company’s name and contact info.

Upon receipt, we perform swift financial background checks and often provide loan approval indications within minutes, subject to full approval. Personal guarantees from the majority shareholders are obligatory for these HMRC tax funding loans, providing lenders with added security. You assure us that your business will continue operating in the next three to twelve months.

In case you halt operations after paying the HMRC bill from the company’s reserves, you stand to lose only the interest paid. We will seek your consent for a personal search, with full underwriting typically completed within 48 hours.

What follows?

The agreement is emailed to you for signing and returning to VAT Loans. You also need to confirm the date for us to pay HMRC. Most firms prefer the HMRC payment to be made three days before the due date, thereby precluding any late payment penalties. Clients usually request the initial direct debit payment to be deferred by a month post the tax bill payment.

All documents are available on our secure portal and our Tax Funding team is readily accessible for any queries.

HMRC is satisfied as your tax liability is settled on time.

Contact Us

Contact us if you require further insights into how HMRC Loans function. Reach out to our team via our contact page, call us on 01494 956 871, or email us at [email protected].

The Future of VAT Financing: Trends and Innovations

The Future of VAT Financing: Trends and Innovations

/in /by

In the world of business, there are many financial challenges companies face, one of which is VAT. Some companies struggle to finance VAT payments, while others seek innovative ways to improve VAT financing. In this blog post, we’ll explore the future of VAT financing, including trends and innovations that can help businesses overcome these challenges.

  1. Use of Technology

The future of VAT financing is heavily reliant on technology to simplify VAT calculation and payment processes. An example is the increase in cloud-based accounting software that is integrated with tax systems. This integration helps businesses to automate their VAT calculations, reducing the risk of human error. In addition, online platforms and APIs that facilitate easy VAT refund claims have emerged and gained popularity in recent years.

  1. Specialised Financial Services

With the increasing demand for VAT financing, specialized financial services have emerged to help businesses manage their cash flows and accelerate VAT refund claims. These services provide financing solutions that enable companies to benefit from prompt VAT refunds without affecting their cash flow. Specialized financing companies collaborate with the tax authorities to verify VAT claims and ensure the process adheres to the relevant tax regulations.

  1. Collaborative VAT Recovery Efforts

As more companies explore new ways of financing VAT payments, tax authorities and other industry players collaborate to simplify the VAT recovery process. This collaboration involves tax authorities working with businesses to facilitate VAT recovery claims using technology innovation.

  1. VAT Bonds

VAT bonds are another innovative means of financing VAT payments. This financing solution offers a quick and easy way for businesses to secure VAT payment financing without stringent requirements. The bondholder provides the business with the VAT payment financing, and in return, the business pays back the VAT amount plus interest within a specified period.

  1. VAT Automation

VAT automation refers to the use of technology to simplify VAT processes such as compliance, reporting, and payments. Automation technology integration helps businesses to reduce VAT compliance errors and avoid late payment penalty fees. VAT automation also facilitates seamless communication between businesses and tax authorities.

In conclusion, VAT financing is a crucial challenge in the business world, and the future of VAT financing is all about innovation and technology. Businesses can leverage technology to simplify VAT processes, including reporting, compliance, and payment. As the demand for special VAT financing solutions rises, the industry will continue to provide innovative ideas to make VAT financing easy and more accessible. If you would like more information on this topic then please get in touch.

How to Use VAT Loans to Optimise Cash Flow

How to Use VAT Loans to Optimise Cash Flow

/in /by

Without cash coming in and flowing out, growth and success can be extremely difficult to achieve. One issue that many business owners face is managing their VAT payments and ensuring they have enough cash to cover them. This is where VAT loans can come in handy. In this blog post, we’ll take a closer look at VAT loans, why they can be useful, and how to use them to optimise your cash flow.

Why are VAT loans useful?

There are a number of reasons why VAT loans can be helpful for businesses. Firstly, they can provide the cash needed to cover VAT payments. This allows businesses to avoid penalties and fees for late payment. Secondly, VAT loans can help businesses to manage cash flow more effectively. This is done by spreading the cost of VAT payments over a period of time. This can help to free up cash for other business operations and investment. Finally, VAT loans can be a useful tool for businesses that are going through a period of growth or expansion, allowing them to manage their cash flow more effectively.

How do you use VAT loans to optimise cash flow?

To optimise your cash flow using VAT loans, it’s important to plan ahead and understand your VAT payment schedule. This will enable you to identify periods where cash flow may be tight and plan accordingly. When applying for a VAT loan, it’s important to shop around to find the best deal. Therefore take into account interest rates, fees, and repayment terms. It’s also important to ensure that you have the ability to make the loan repayments on time and that borrowing won’t put undue pressure on your cash flow.

It’s worth noting that VAT loans shouldn’t be seen as a long-term finance solution. They are however designed to help businesses manage short-term cash flow issues and should be used as such. It’s important to re-evaluate your cash flow regularly and take steps to improve it where possible.

VAT loans can be a useful tool for businesses looking to optimise their cash flow. By providing the cash needed to cover VAT payments and spreading the cost over a period of time, businesses can free up cash for other operations and investments. However, it’s important to plan ahead, and ensure that borrowing won’t put undue pressure on your cash flow. VAT loans are a short-term finance solution and should be used as such. If you would like more information on how to use VAT Loans to optimise cash flow then please contact us.

VAT Loans for Start-ups: Funding Your Business Growth

VAT Loans for Start-ups: Funding Your Business Growth

/in /by

Starting your own business is a massive accomplishment. As a start-up owner, you’re passionate about making your business succeed, and the last thing you want is any financial constraint hindering your growth. However, sometimes it seems like the expenses of running a business are endless, from buying office equipment to paying staff salaries. One aspect of business that many start-ups often overlook is VAT loans. VAT loans for start-ups is an excellent way to help in funding your business growth, and this blog post is going to walk you through everything you need to know.

What is a VAT loan?

A VAT loan is a loan meant to help you pay Value Added Tax (VAT) payable on goods and services. When you’re a registered VAT entity in the UK, it becomes mandatory to file VAT returns and make VAT payments, which can be an additional financial burden for start-ups. VAT loans can enable you to spread the cost of VAT payments over a more manageable period, freeing up cash flow for other areas of business growth.

Why are VAT loans essential for start-ups?

Start-ups often operate on a tight budget, making access to working capital crucial to fund different aspects of growth. VAT loans are a form of working capital and can significantly help bridge the gaps between cash flow and financial obligations. Additionally, taking a VAT loan can also help you build-up good credit history, which can be beneficial when seeking additional funding options in the future.

How can I qualify for a VAT loan?

To qualify for a VAT loan, you must be a registered business that files VAT returns. As long as your business meets these criteria, you can apply for a VAT loan. Many lenders offer VAT loans, including online lenders, traditional banks, and financing companies.

What are the benefits of taking a VAT loan?

Taking a VAT loan can have several benefits for start-ups, including:

  • Improved working capital: VAT loans can help improve the cash flow of your business, which is crucial for start-ups.
  • Better financial management: Spreading the cost of VAT payments can help you manage your financial obligations efficiently.
  • Early VAT return refund: Some lenders offer early return refunds to enable you to access your VAT returns before the standard filing and refund period.

In conclusion, VAT loans are an excellent way for start-ups to finance their growth. Not only do they help spread the cost of VAT payments, but they also improve working capital and financial management. If you would like more information on VAT loans for start-ups for funding your business growth please contact us.

Why VAT Loans Are Vital for the Growth of Small Businesses

Why VAT Loans Are Vital for the Growth of Small Businesses

/in /by

One way smaller businesses can acquire necessary funds is through Value Added Tax (VAT) loans. VAT loans are designed to alleviate the cash flow constraints caused by VAT payment delays by the government. These loans offer a convenient way for businesses to address short-term financial complications and help maintain a steady cash flow. In this blog post, we will explore why VAT loans are vital for the growth of small businesses.

1. Helps to Keep Cash Flows Steady

Small businesses can suffer from inconsistent cash flow, with buying inventory or paying staff on time becoming a challenge. With VAT loans, businesses can keep their cash flows consistent and improve their financial stability. These loans are therefore designed to help businesses manage payments by offering a cash advance ahead of their VAT payments. This allows businesses to take care of bills and expenses, and avoid late payments and penalties.

2. Offers Flexible Repayment Options

One of the most significant benefits of VAT loans is their flexibility. Businesses can therefore choose to repay VAT loans over a few months to up to a year. This offers businesses the ability to make repayments in a manageable and practical fashion. The repayment plans for VAT loans can be tailor-made to fit the specific needs of the business. This allows businesses to regain control of their finances without incurring additional debt.

3. Boosts Growth and Expansion

VAT loans are specifically designed to help small businesses improve their cash flow and help them grow. They are not designed with only short-term loans in mind; the loans are intended to help businesses expand and succeed in the long-term. When businesses can manage their finances better, it allows them to invest in new machinery or equipment, which in turn helps increase productivity, improves speed of service, and reduces downtime. This can lead to increased revenue and profits.

4. Could save Money in the Long Run

By taking advantage of a VAT loan, businesses can save money. Late payments of VAT attract a penalty from HM Revenue & Customs, further putting a strain on cash flow. A loan will help the business pay the VAT on time, avoiding the late payment fees and interest rates. This means businesses can spend more time focusing on growth and development rather than worrying about how to settle their obligations for orders delivered or services rendered.

In conclusion, VAT loans offer a practical and efficient way for small businesses to manage their finances better. VAT loans provide flexibility and convenience that is not offered by traditional bank loans. If you would like more information on why VAT loans are vital for the growth of small businesses then please get in touch.

CONTACT US

PORTAL ACCESS

westwon footer

CORPORATE INFORMATION

© 2023 Tax Funding Limited T/A VAT Loans

The Financial Conduct Authority (FCA) regulates financial services in the UK and you can check this on the Consumer Credit Register by visiting the FCA’s website here or by contacting the FCA on 0800 111 6768. Tax Funding Limited T/A VAT Loans is a credit broker and not a lender. VAT Loans companies deals with a range of lenders. All VAT Loans’ companies hold a current Data Protection Licence. These details, together with our policy on Treating Customers Fairly, Complaints Policy and address details are held under our Get in Touch page.

This website uses Cookies to give you the best most relevant experience. Continued use of this site means you have accepted our policy.