VAT Loans - How to get an instant VAT refund

If you have an upcoming vat bill and your cash flow is short, a vat loan could help ease the process for your business.

  • Get fast funding for your upcoming business VAT bill

  • Instant VAT refunds available

  • Cash in your bank in as little as 60 minutes

  • Instantly check your eligibility for free

Smiling small business owner in a workshop looking at his phone while holding a pencil, with icons of a stopwatch and money symbolising time and financial management.

What are vat loans?

When a business charges value added tax (VAT) on its sales or incurs it on their purchases, it will pay the balance to HMRC on a regular basis, typically quarterly or monthly. VAT is a legal requirement for UK businesses and if you fail to pay it, you will receive penalty fees.

A VAT loan is a specific type of financing designed to help businesses delay their payments to HMRC or speed up VAT refunds to ease working capital. When cash flow issues prevent a business from paying VAT on time, a VAT loan provides the necessary funds to meet these obligations without disrupting your other business operations.

How do VAT loans work?

Some VAT loan lenders work by paying HMRC directly on behalf of your business once your loan is approved. Other VAT loan lenders will provide your business with a loan equivalent to the amount of VAT due. In both of these circumstances, the loan is then repaid over time back to the lender. The repayment includes the principal loan amount plus any interest accrued over the agreed repayment period.

Are there different types of VAT loans?

Yes, there are different types of VAT loans which can be helpful for different business needs and industries. Here’s an overview of the different types of VAT loans you might be able to access:

VAT loans to spread the cost of your bills

Some lenders offer financing solutions that allow businesses to spread their VAT and corporation tax payments over monthly instalments, easing the burden of larger quarterly or annual payments.

VAT bridging loans

VAT bridging loans act as a short term finance solution. This loan will help to bridge a cash flow gap that your business might have, enabling you to pay your VAT bill on time.

VAT refunds

After you submit a VAT return, it can take HMRC up to 30 days to process your VAT refund. These delays could cause a strain on your business’ cash flow whilst you’re waiting to receive cash that you’re owed. Through our partnership with Adsum, Capitalise offers an option where businesses can receive a VAT refund payment within just 60 minutes. As an approved HMRC agent, all you need to do is connect your HMRC account and you’ll receive the funds in your account as soon as your VAT return is verified.

INSTANT VAT REFUNDS WITH ADSUM

VAT refunds within 1 hour

Say goodbye to waiting days for your VAT refund.

Get your VAT refund within 60 mins, with our partner Adsum

Are there any advantages or disadvantages to a VAT loan?

  • Advantages of a VAT loan

    • VAT loans help to manage cash flow variations, enabling your business to operate smoothly without financial stress.

    • They can prevent late payment penalties that come from missing VAT payment deadlines.

    • Some lenders allow VAT to be paid in smaller, monthly amounts rather than a single large sum, aiding in more predictable financial planning.

  • Disadvantages of a VAT loan

    • VAT loans carry interest, this means that the total amount paid could exceed the original VAT owed.

    • Obtaining a VAT loan adds to your business’s total debt, which may limit future borrowing opportunities.

    • Typically, VAT loans have shorter durations, which means monthly payments might be higher compared to long term financing options.

Will I be eligible for a VAT loan?

To be eligible for a VAT loan, you’ll need to met the following criteria:

  • Be VAT registered with HM Revenue and Customs (HMRC)

  • Have at least 6+ months trading history

Depending on the specific lender, you might also need to have a good business credit score and a minimum monthly turnover.

Applying for a VAT loan

Don’t put off paying your vat bill due to a cash flow shortage.
Apply for a vat loan with Capitalise and you could get funding in as little as 1 hour.

Frequently asked questions about vat loans