The payment of VAT usually consumes large amounts of money from professional firms. It is common for firms to experience strained cash flow every quarter after paying VAT. This strain interferes with the smooth running of the firm. Today, there are various firms that offer VAT loans.
Such a loan is usually for purposes of providing bridging finances for a short period till the company gets VAT refunds. Some lenders give this loan to the new companies to make VAT payments on equipment bought or property bought. All kinds of professionals can be eligible for the loan.
Each lender has his own terms of lending but basically the loan is for a short period ranging from 3 to 12 months. This loan releases the firm’s funds for working capital or to be used for other pressing financial needs. The interest rate is usually quite minimal and can be even as low as 1%.
This loan offers you benefits like improving the cash flow of your firm giving it a greater chance of growth and development. You are charged fixed payments monthly which allows you to plan your finances. They offer competitive, affordable rates. You can also get funding from other sources as credit lines are left open.
The financier may require certain details from you. These include your accounts for past two years, copy of your VAT returns showing your amount of liability plus your updated management accounts. Names of directors/partners, bank statements for the last three months and the availability of personal guarantee may be required too.
It is fast and very easy to apply for the VAT loans. They are usually processed in a matter of days. You can apply through the internet for a quotation that is personalized and designed for your specific requirements. The financiers and their expert advisory teams usually provide excellent services and usually don’t have any hidden costs.