VAT Loans

Spread the cost of your VAT bill with fast, flexible VAT finance

What Is a VAT Loan?

A VAT loan is a short-term business finance solution designed to help companies pay their quarterly VAT liability to HMRC without impacting cash flow.

Rather than using valuable working capital or dipping into reserves, a VAT loan allows you to spread the cost over 3 to 12 months — freeing up cash for other operational needs and avoiding penalties from late payment.

Whether you're growing quickly, dealing with seasonal fluctuations, or facing an unusually large VAT bill, VAT finance helps you stay compliant and in control.

Types of VAT Finance

At The Funding Group, we offer VAT funding solutions tailored to suit your business’s cash flow and tax schedule:

Standard VAT Loans

  • Finance your HMRC VAT bill over 3, 6, 9, or 12 months

  • Paid directly to HMRC or to your business account

  • Fast and discreet with minimal paperwork

Rolling VAT Finance

  • Automatically cover each quarterly VAT bill with pre-approved facilities

  • Avoid reapplying every three months

  • Ideal for businesses with predictable VAT cycles

Emergency VAT Funding

  • Last-minute solutions if your VAT payment deadline is imminent

  • Same-day decisions and fast drawdown available

  • Avoid HMRC penalties and stress

Typical Terms & Key Features

  • Loan Amounts: £10,000 to £2 million+

  • Term Length: 3 to 12 months

  • Security: Unsecured or secured depending on loan size and business profile

  • Interest: Fixed or variable depending on lender

  • Repayment: Monthly instalments aligned with your cash flow

  • Speed: Funds available within 24–72 hours

We work with a wide panel of VAT loan providers, offering competitive rates and flexible terms to businesses across all sectors.

Who Can Use a VAT Loan?

VAT loans are suitable for any UK business that’s VAT-registered and due to make a quarterly or annual payment, including:

  • Limited companies, LLPs, and sole traders

  • Growing businesses with rising VAT liabilities

  • Companies experiencing seasonal income variations

  • Businesses affected by unexpected costs or tight cash flow

  • Firms with one-off or unusually large VAT bills

Even if you’ve had credit issues in the past, we may be able to help — especially if you have strong revenue and a clear repayment plan.

Benefits of VAT Loans

  • Protect working capital and business liquidity

  • Avoid late payment penalties and interest from HMRC

  • Free up cash for wages, suppliers, or reinvestment

  • Flexible terms and manageable monthly repayments

  • Improve financial planning and cash flow forecasting

  • Fast decisions with minimal paperwork

By financing your VAT bill, you can stay focused on growth — not tax deadlines.

Need Help With a VAT Bill?

Whether you’re preparing for an upcoming VAT return or need urgent support to meet a deadline, The Funding Group can help you arrange fast, flexible VAT finance tailored to your business.

Speak to one of our UK-based funding experts today for a free, no-obligation quote.