How do VAT loans work?
1. Apply & approve
2. We pay HMRC
3. Repayments
Why might you need a VAT loan?
Spread the cost
Turn your large, immediate quarterly VAT bills into a set of smaller, more predictable monthly payments. Spread the financial impact to accommodate your cash flow.
Preserve capital
Avoid letting a large VAT bill deplete your working capital. Keep reserves available for essential payroll, day-to-day business operations and emergencies.
Manage seasonality
Use the loan to cover your VAT bill during your quiet season, when your cash reserves are typically low. VAT finance is ideal for businesses with variable revenue.
Fund growth
Allocate your business savings to strategic investments and growth opportunities - like bulk stock purchases or marketing campaigns - whilst your tax bills are covered.
Bridge purchases
Finance the upfront VAT on large capital assets (like an office building or factory) whilst you wait for your eventual tax reclaim - which can take weeks or months.
Avoid penalties
Guarantee your mandatory VAT payment will meet the deadline. Avoid costly HMRC penalties, late fees and stressful interest charges on overdue tax bills.
Are you eligible for a VAT loan?
Be over 18 Be a UK resident Have a UK-based business Have a UK bank account
What do you need to apply for a VAT loan?
Your HMRC VAT bill Basic information about your business, such as how old it is, and your annual revenue Information on directors and shareholders Bank statements covering the past year
We've already helped businesses secure more than £1.6 billion
How to apply for a VAT loan
Tell us how much you need to borrow We’ll ask you how much you need, what it’s for, and for some basic information about your business. Compare loans without impacting your credit score We’ll connect you to the largest network of lenders in the UK, so you can view affordable credit options that suit the unique needs of your business. Apply in minutes Once approved, you’ll receive a quote from a lender you matched with. Get a decision and money is released Depending on the type of finance you’ve applied for, credit could be available in around 24 hours.
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Aaron MoOng Ong Buns
With the help of Tide and their team of business finance experts, I was able to navigate the complexities of business finance, and secure the necessary funds to grow my business.
What are VAT loans?
What are the different types of VAT loans?
Standard VAT loans
Typically used for regular, recurring quarterly VAT payments Designed to spread a large, mandatory cash flow expense over a shorter, manageable period This is the most common type and covers the vast majority of VAT requirements - ideal when the payment is urgent or when spreading the cost is the priority
VAT bridging loans
Typically used for VAT due on one-off, large purchases, like commercial property Designed to bridge the cash flow gap between paying the VAT upfront (a requirement for many commercial property deals) and the time it takes to receive the VAT reclaim refund from HMRC This type of VAT loan is repaid with the refund money
What are the benefits of VAT finance?
Fast access
Fixed repayment terms
Improved supplier relations
Simple, specific purpose
Protect existing credit
Alternatives to Business VAT loans
Use your business savings to cover your tax bills and apply for other business loans to invest in growth and day-to-day operations.