What is a VAT Loan?
This is a lending facility offered to a business where they have a requirement for support when paying the VAT without the requirement for tangible security. This can assist a business by allowing them a short term cash injection when needed most. Personal guarantees will be required.
How much can we borrow?
Anything from £1,000 to £75,000 (Loan provided in line with the VAT bill, evidence required).
What term can I take the loan over?
Maximum of 3 months
How do we repay the loan?
The value of repayments will be agreed at the outset. Once you accept the offer, a contract will be made available for you to sign. A direct debit will then be set up in order for the financier to recover the monthly repayments over the agreed period of time.
What Security will be required?
The lender would require a personal guarantee from all directors. An Asset and Liability Statement must be complete by all Directors to confirm there is sufficient value in the personal guarantees to support the loan.
What do we need to qualify?
- Business to be trading for a minimum of two years
- No legal notices or insolvency proceedings
- Defaults must be over two years old and not more than £1,000 in value or a reasonable explanation must be provided
- Be a registered business within the UK
- UK homeowner (minimum of one Director)
What will we need to provide?
Firstly the online application will need to be complete. Once this has been done you will need to send the following information to firstname.lastname@example.org
- The last three months bank statements
- The last full set of annual accounts
- Current balance sheet & profit & loss
- Draft accounts (if the full year end accounts are over 12 months old)
- All Directors to complete an Asset and Liability Statement (click to open and save form)
- A copy of the VAT bill
- Please note that some lenders may request projections. We will advise if these are required.
- Your application will not be processed until we have received all of the requested information listed above.