Challenge

Managing cash flow effectively is critical for any business, and VAT liabilities can place significant pressure on working capital. A family-run business specialising in materials handling equipment solutions faced two major VAT liabilities—£162K in December and £132K more recently.

While the first liability was partially self-funded, the second posed a greater challenge: the client needed a full loan to cover the amount, but complications arose due to arrears in PAYE liabilities, a high overdraft facility, and increased loan requirements. Initial loan applications were declined by underwriters, threatening smooth business operations.

Solution

We worked closely with both the client and the lender to secure the funding needed. Our proactive approach included:

  • Providing clear explanations to address underwriter concerns.

  • Assisting the client in preparing a detailed sales forecast for incoming orders and projected profits.

  • Encouraging the client to make a payment toward outstanding PAYE liabilities and commit to bringing them up to date within the month.

Thanks to our strong relationship with the lender, the underwriter went the extra mile staying late on a Friday to ensure approval and timely processing of the VAT loan.

Result

By 6:15 PM, the funds were released, allowing the client to pay HMRC on time and enjoy their weekend stress-free. The family-run business maintained smooth cash flow, avoided operational disruption, and retained working capital for growth and investment.

Using a finance broker for VAT loans provides businesses with:

  • Flexibility: Fund the full VAT liability or part of it, depending on strategy.

  • Speed & Efficiency: Navigate complex approvals and secure funding quickly.

  • Problem-Solving: Overcome obstacles with tailored support, increasing approval success rates.

For businesses facing VAT liabilities, partnering with an expert finance broker can make the difference between stress and financial stability.

Together, we’re doing more for business

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