VAT Loan & VAT Funding
Fund a quarterly VAT bill so it does not fall due before your customers have paid you.
- Whole-of-market — 60+ lenders searched
- All credit histories considered
- Decisions in as little as 24 hours
Whole-of-market — 60+ lenders searched, including
VAT is the liability that catches out growing businesses. You invoice, you owe the VAT, and the customer pays sixty days later — often after the return is due. A VAT loan spreads the bill across the quarter so growth does not create a cash flow crisis.
What you can fund
Quarterly VAT bills
Spread across the following quarter.
Rolling facilities
Arrange once, use each quarter.
Growth-driven VAT
When invoicing outpaces collection.
HMRC paid on time
Returns settled, compliance kept.
Large one-off invoices
A single contract creating a liability.
Combined with CT
VAT and corporation tax on one facility.
Why VAT hurts growing businesses most
VAT is charged on what you invoice, not on what you have been paid. Win a large contract, invoice it, and the VAT becomes payable on your next return whether or not the money has arrived. The faster you grow, the worse it gets — which is the opposite of how funding usually works.
Cash accounting helps if you qualify, and is worth discussing with your accountant. Where it does not apply or the turnover threshold has been passed, VAT funding bridges the gap.
How VAT funding works
The lender pays your VAT liability, HMRC receives it on time, and you repay across the following quarter — typically three months, so the facility clears before the next return. VAT finance is usually a rolling arrangement rather than a one-off, because the problem recurs every quarter.
Can you pay VAT in instalments?
Only via an HMRC Time to Pay arrangement, requested and granted at HMRC’s discretion. It has no fee, so try it first. A VAT loan is the route when Time to Pay is refused, when you need the certainty of an arranged facility, or when you would rather not have repeated arrangements on your compliance record.
Rolling quarterly facilities
Because VAT recurs, many businesses arrange a facility once and use it each quarter rather than applying repeatedly. That is usually cheaper and considerably less disruptive than a fresh application every three months.
What lenders look at
Filed VAT returns, current trading, debtor book quality and your HMRC payment history. A clean return history matters more here than almost anything else, because it evidences that the liability is genuine and predictable.
What it costs
It is unsecured short-term lending, so it costs more than asset finance. Over a single quarter the total cost is often modest against the alternative of chasing payment early, discounting an invoice, or going into arrears with HMRC. We will show you the figure in full.
See also: tax and VAT funding generally, or corporation tax loans for year-end liabilities.
How it works
Tell us what you need
One quick conversation about the asset and how the repayments need to work.
We search 60+ lenders
As an independent broker we find the right structure and rate — not one lender’s products.
You get funded
Indicative decisions in as little as 24 hours, then we manage it through to payout.
Estimate your repayments
Asset finance is quoted on a flat rate, so that is what the buttons show, with the equivalent APR beside it. Your exact rate depends on the asset, the term, the deposit and the lender.
Prime is an established, profitable business with clean credit. Specialist covers newer businesses and credit that needs explaining — the asset itself carries part of the risk, which is why finance is often available where an unsecured loan is not.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 5.15% flat rate (equivalent to 9.9% APR representative), you would repay around £628 a month; total amount repayable approximately £30,150, of which £5,150 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and will receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval.
Rates shown are indicative flat rates with the equivalent APR alongside — the two are not the same number. Indicative only and does not constitute a quote or an offer of finance. Subject to status and lender approval.
Frequently asked questions
What is a VAT loan?
Can I pay VAT in instalments?
Why does VAT cause problems for growing businesses?
Would cash accounting solve it?
Can I use a VAT facility every quarter?
Do you cover my area?
Get your quote
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 0333 772 4864 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.