VAT finance can help businesses smooth their outgoings and make their quarterly bill less of a struggle
The quarterly VAT return is a ritual for most businesses: being a tax collector on behalf of HMRC comes with responsibilities and few perks.
One of the biggest downsides is the VAT bill each quarter, which can be difficult for some businesses to cope with, particularly if the business is seasonal. Big seasonal shifts can require funds that often aren’t available when they are needed most.
A VAT loan might be the answer. Just as domestic energy companies will smooth out peaks and troughs in consumption by billing for an annual average each month, VAT finance enables customers to pay their tax bill as required and spread repayments over 3, 6,9, or 12 instalments.
Rhys Cunnah, Head of Unsecured Loans at Swoop, says that there are many advantages to businesses taking out VAT finance:
“Company finances are much easier to manage when you know your monthly outgoings and don’t have to factor in a large payment every quarter. VAT finance has other benefits: with a rolling VAT loan, highly seasonal businesses are able to stay on top of their cash flow through the year.”
If your VAT return is giving you a headache, register with Swoop to find out whether VAT finance is right for you.