A VAT loan application starts with the company’s funding need and ends, if approved, with an agreed payment and repayment schedule. The exact checks and timing depend on the lender and the application.
1. Confirm the bill and funding gap
Check the VAT liability, payment deadline and reference. Work out how much cash the company can safely contribute after allowing for its other commitments. Borrowing part of the bill may be an option, subject to lender approval.
2. Estimate repayments and check affordability
Use the VAT loan calculator for an indicative estimate. Compare repayments with expected cash receipts and existing commitments, including the next VAT bill. Allow for a customer paying late.
3. Provide the application information
You will need company and VAT details. Depending on the application, the lender may also request accounts, management figures, bank statements and director information. Use the document checklist to prepare; the team will confirm the actual requirements and submission method.
4. Review the lender’s decision and terms
Approval is subject to assessment. If an offer is made, check the total cost, repayment dates, fees, early-settlement terms, and any security or personal guarantee requirements. Request clarification before signing anything you do not understand.
5. Confirm payment to HMRC
After approval and completion of the documents, the agreed funding process can proceed. Confirm how and when HMRC will be paid, and check the correct reference. An application does not guarantee payment by your deadline.
6. Make the agreed repayments
Keep the repayment dates in your cash-flow forecast and plan for future VAT liabilities alongside the loan. Any subsequent finance request will depend on a fresh assessment; previous borrowing does not guarantee another approval.
If payment is already difficult, follow the steps for a VAT bill you cannot pay and contact HMRC promptly. For an affordable temporary funding requirement, check eligibility or call 01494 956 871.
Contact Us
For more information on VAT loans 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].