HMRC VAT and Corporation Tax Loans
Applying for a bank loan can be a time consuming and arduous process. Even dealing with Peer to Peer lenders has its challenges with lots of information being required. Their lending policy may not easily work if you only wish to borrow £8,000 over a three-month term.
For UK companies who may not have the cash to pay their VAT bill, and are potentially looking at a 15% fine from HMRC, help may be at hand. Interestingly, there are many reasons why companies use tax funding companies like WestWon.
This business is built upon our completing many loans – all short term between three months and one year in repayment duration. The profit per loan is small – there are no documentation fees or hidden extras that many banks charge to make their profit. We rely on a quick and simple system, with clear documentation that will allow you, the customer, to make a decision without a fear of “what is the catch.”
We will need to know the following information:
- How much are you looking to borrow? (£8,000 to over £1m)
- How long do you wish the loan repayment to last? (Three months to one year)
- Would you like to pay your first direct debit repayment before HMRC are paid, or shall we delay it for a month? (Most companies request the one month delay)
- The name of your company and contact information.
Once we have this, we will conduct a few quick searches on financial information in the public domain. We will give a good indication as to “yes” or “no” often within minutes, subject to a full approval.
Personal guarantees of the main shareholding directors are always needed for these HMRC tax funding loans. This is the only security needed. It makes sense from a loan provider’s perspective. You are saying that you believe your company will still be trading in three to twelve months. If you were to pay the HMRC bill from the company’s cash reserves, and you did stop trading; technically, you are no worse off other than the interest you have paid. We will ask for your permission to undertake a personal search on you.
Full underwriting will take up to 48 hours. For many companies, this will be quicker.
Once we have the facility agreed, the agreement is emailed to you. Then, it is a simple case of signing the paperwork and returning it to WestWon. We will also ask you to confirm the date you would like us to pay HMRC. Most companies will ask for the HMRC payment to be made up to three days before the bill is due, thus avoiding any fine for late payment. Most clients also request the first direct debit payment to be deferred for a month after the tax bill has been paid.
All documentation is on our secure portal. Our Tax Funding team is on hand to answer any questions you may have.
HMRC are happy, and we will have paid your tax liability on time directly to them.
Speak with a member of the WestWon Tax Funding team now on 0116 243 8822, email firstname.lastname@example.org, or get an instant quote.
Written by Jeremy Hall.