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VAT funding is a specialised financial solution designed to help businesses manage their Value Added Tax (VAT) obligations more effectively. It allows companies to spread the cost of their quarterly VAT bills over a longer period, typically three to six months.
This type of funding essentially provides a short-term loan to cover the VAT payment due to HMRC, which the business then repays in instalments. VAT funding aims to ease cash flow pressures, particularly for businesses that experience a time lag between paying VAT on invoices and receiving payment from customers. By offering this flexibility, VAT funding helps companies maintain healthy working capital and invest in growth opportunities, without the strain of large, lump-sum VAT payments disrupting their financial stability.
If you’d like to know more about VAT funding, an Articus Finance Broker can help.
Whether you’d like to make a finance enquiry or simply have
a question about our services, we’re on hand to help.
The general criteria to access VAT funding loans are as follows, however each lender is different:
The business must be VAT-registered, which typically means having a taxable turnover above £85,000 per year
Lenders may require evidence of the business's turnover to assess eligibility
A good credit history is often required to qualify for a VAT bridging loan.
You'll likely need to provide:
Lenders will want to see that your business can repay the loan on time
VAT loan amounts can range from as little as £5,000 to as high as £5 million, depending on the business's circumstances and the lender
The highly seasonal nature of tourism can lead to fluctuating cash flows. VAT financing can help manage off-peak periods and prepare for high seasons. Useful for hotels, restaurants, and tourist attractions to cover VAT bills during slower months.
This industry often requires large upfront investments in materials and equipment. VAT funding can help bridge the gap between production costs and customer payments. This is particularly beneficial for companies with long production cycles or custom orders.
This industry often deals with large-scale projects and significant upfront costs. VAT funding solutions can help manage cash flow during lengthy project timelines and for covering VAT on materials and subcontractor costs before client payments are received.
Retail experiences seasonal fluctuations, especially around holidays. VAT finance can help manage inventory purchases and staffing costs during peak seasons. This is particularly useful for businesses with high-value goods and significant VAT obligations.
Professional services often experience delays between service delivery and client payment. VAT bridging finance can help smooth out cash flow irregularities. Most notably it can help to cover VAT obligations on invoiced work before receiving payment from clients.
VAT funding is a short-term financing option designed to help businesses pay their VAT bills. It allows companies to spread the cost of their quarterly VAT payments over a longer period, typically three to six months.
Eligibility typically includes:
VAT bridging loans can range from as little as £5,000 to as high as £5 million, depending on your business’s circumstances and the lender.
How does the application process work?
The process typically involves:
Benefits include:
Are there any disadvantages to VAT funding?
Potential drawbacks include:
The application review process may take as little as 48 hours, with funds potentially being paid to HMRC within a few days of approval
While some VAT loans may not require security, others may be considered secured business loans, requiring you to put up assets as security.
How are repayments structured?
Repayments are typically made in monthly instalments over a period of three to twelve months, depending on the agreement with the lender.
Using a broker for VAT funding can be beneficial because:
At Articus Finance, we recognise that each business has unique financial requirements. Our service model is built on a foundation of customisation and attention to detail. We meticulously analyse your business structure, cash flow patterns, and industry-specific challenges to craft a VAT funding solution that aligns perfectly with your organisational needs. Our end-to-end support ensures a seamless process from application to fund disbursement.
Articus Finance has cultivated strong relationships with a diverse portfolio of lenders. These strategic partnerships enable us to access a wide range of funding options, often at preferential rates. Our strong standing in the financial community translates directly into tangible benefits for our clients. Furthermore, we are committed to fostering long-term relationships with our clients, providing ongoing support and adapting our services as your business evolves.
Our team comprises industry-leading experts with in-depth knowledge of VAT legislation and funding mechanisms. We maintain a proactive stance on regulatory changes and market trends, enabling us to offer innovative solutions that are both compliant and effective. This expertise allows us to optimise your VAT funding strategy, potentially identifying opportunities for tax efficiency and cash flow improvement that you may not have considered.
As a fully FCA-regulated entity, Articus Finance operates with the highest standards of professional conduct and regulatory compliance. Our transparent processes and ethical practices have earned us a reputation for reliability and trustworthiness in the financial services sector. We prioritise the security of your financial information and the integrity of our transactions, giving you the confidence to focus on your core business activities.
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Harry has over 16 years of experience within the Finance, Housing and Development sector. He started off his career as a CIMA Qualified Chartered Accountant and transitioned over to financial services in 2019. During this time he has dealt with a range of complex financial arrangements from ex pat mortgages to large development loans. Harry has a can do attitude and believes there’s a solution to every situation and will work tirelessly to ensure your deal crosses the line. In his spare time Harry likes to play poker, travel and try new cuisines.
Carolina is a multilingual Marketing Manager originally from Portugal. She specialises in International Marketing and Business, helping organisations expand their brand awareness globally over the last 4 years. Her past work includes supporting start-ups to multinational companies in the UK and across Europe. She is a creative and passionate individual, bringing a fresh perspective to the financial industry and delivering high quality research.
In her spare time, Carolina enjoys socialising & travelling around the world, embracing different cultures and experiences.
Antonia brings fantastic planning, organisational and time management skills to her role as office manager, ensuring that operations at Articus run smoothly. An experienced administrator with fantastic problem solving skills, Antonia began her career working in medical administration, so she is highly experienced working with confidential client data.
Matthew has experience working as a mortgage administrator and assisting with clients of any calibre. His main strength is his ability to develop a close relationship to his brokers and clients, allowing for a smooth transition throughout your mortgage journey, his friendly nature helps in making the process a lot less intimidating than it needs to be. Outside of work Matthew spends his time playing Chess and exploring the world with his Girlfriend.
Theo started his journey in the specialist finance industry while working as a journalist at an industry trade magazine. During this time he amassed a great knowledge of mortgages, bridging, development and commercial funding and established a wealth of relationships in the industry. He transferred these skills and now specialises in assisting clients with their specialist finance requirements. Working alongside the CEO, Theo has learnt the nuances of ultra-complex transactions and knows how to most efficiently manage the funding process to completion. Theo aims to achieve the best solution for every client he deals with a particular focus on sourcing funding for developments and refurbishment.
With over 20 years of financial services experience Dino is an accomplished mortgage adviser who relishes the more complex cases, enjoys a challenge and always does everything he can to ensure his clients not only get the result they need but to achieve their property goals. A fully qualified financial adviser Dino quickly realised that property and mortgages were his passion and over the years gained his experience helping investors build their property portfolios. When not working Dino enjoys spending time with his family, loves modern and classic performance cars, popular culture, technology, mountain biking and is a supporter of West Ham United.
Whether you require access to bespoke funding, or need to fund a project of any scale, Samuel will always find a solution to meet the requirements of any client. No matter how complex your case is, through his innovative and determined nature, he can find a structure to finance a client’s plans. As a trained martial artist, Samuel’s passion and confidence carries over into the workplace, and you can expect a clear and concise transaction journey from start to finish.
Jason started in 2012 in financial services working across London’s property and financial services markets for HNW individuals. He is able to construct tailor-made solutions to suit his client’s needs, no matter how complicated. He has completed multi-million pound residential, buy to let and commercial developments across the UK. Jason is a confident and motivated individual whom takes pride in offering an exceptional and professional level of service to all of his clients. Outside of work he enjoys hiking, cycling and traveling the world with his sights set on Base Camp Everest.
Assad prides himself on being open minded and thinking outside the box. Through a personalised approach and consistent communication; Assad’s strong relationships with specialist lenders gives him the ability to reach the ideal outcome for his clients. With a particular strength in dealing with foreign nationals and ex-pats he approaches his clients with a can-do attitude. His attention to detail allows him to actively support his clients and build a long-term relationship by giving a truly tailored approach. Outside of work, Assad is a keen explorer and foodie, regularly travelling to remote destinations and testing out the local cuisines.
Shyan is a global businessman with keen commercial acumen and a deep understanding of the UK property market. Following the successful completion of an undergraduate and postgraduate degree in Mathematics from King’s College London, Shyan has held a range of highly strategic roles, with a focus on UK property investment – meaning he is well versed in the world of HNW property finance. Not only is he an experienced UK landlord, he has an impressive history in the world of property trading, and has played a pivotal role in the completion of a number of large scale development projects with values up to £30 million.
Ollie entered the world of high net worth mortgages after living in Geneva, where he provided tailored financial advice to private clients. This experience shaped his career trajectory, giving him first-hand experience in understanding and communicating the benefits of financial advice – all while developing the ability to build exceptional client relationships. Following this, Ollie moved back to London where he began specialising in mortgages. His drive, ambition and natural flair for anticipating the needs of his clients led him to progress quickly from Client Services to broker, where he honed his skillset after passing his CeMap exams. Outside of work, Ollie is an avid traveller – and an equally keen supporter of his local club, Fulham FC.
Antonio has over a decade’s experience arranging and negotiating mortgage finance for some of the UK property market’s most complex transactions. During his career, he has worked at some of the UK’s most prestigious mortgage brokerages, as well as the fast-paced world of currency broking. As a result, he has a wealth of relevant experience in handling complicated cases, like clients buying properties through trusts. Crucially, Antonio has developed an almost unparalleled network of close industry relationships. This enables him to navigate challenging situations with ease, and he relishes taking on cases that have struggled to progress elsewhere and seeing them through to completion.
Antonio started in financial services in 2006, arranging and negotiating mortgage finance for some of the UK property market’s most complex transactions. During his career, he has worked at some of the UK’s most prestigious mortgage brokerages, as well as the fast-paced world of currency broking.
As a result, he has a wealth of relevant experience in handling complicated cases, like clients buying properties through trusts. Crucially, Antonio has developed an almost unparalleled network of close industry relationships. This enables him to navigate challenging situations with ease, and he relishes taking on cases that have struggled to progress elsewhere and seeing them through to completion.