Yes, funding to settle a tax liability is a recognised part of the commercial lending market. It is typically used for VAT and corporation tax, and works by a lender advancing the amount due so the bill is paid on time, with you repaying the lender in instalments over an agreed period.
Whether it is available to you depends on the lender’s view of your business — trading history, current commitments, bank conduct and affordability. Some lenders take a personal guarantee. As a credit broker we can approach lenders from our panel on your behalf, but no one can guarantee an approval before a case is assessed.
Weigh the alternatives first. Paying from reserves costs nothing in interest. An HMRC Time to Pay arrangement may be available and is agreed directly with HMRC. Borrowing has a real cost and adds a further commitment, so it should be a decision, not a reflex.
There is one point worth being blunt about: borrowing to pay tax does not reduce what you owe, and it does not remove your obligation to HMRC until the payment actually reaches them. If tax bills are becoming a regular problem, the issue is usually upstream in pricing or cash flow, and that is worth addressing with your accountant.