Tax Funding: The Complete Guide

Sometimes businesses find themselves in situations where cash flow is tight, perhaps due to unforeseen circumstances like the pandemic or rising costs. By obtaining a Tax Funding loan, it is possible to borrow funds to make payments for VAT or corporation tax.

Considerations

• Approach HMRC first to see if they will agree to a Time to Pay proposal.
• If not possible, find a lender that can lend funds during cashflow shortfalls.
• Stay on top of debtors to alleviate shortfalls without further expenditure.

There are several different lenders out there who may structure the loan by way of offering a short term business loan or longer-term facilities.