Funding Guru
What are VAT loans, and how do they work for businesses in the UK?
VAT loans are short-term financing solutions that help UK businesses cover their VAT bills when they don't have enough cash flow. Instead of paying the VAT due in one lump sum, businesses can spread the cost over several months. This can ease the financial pressure, especially for companies with seasonal income or those facing unexpected expenses. The loan amount typically covers the exact VAT owed, and businesses repay it in instalments along with interest. VAT loans can be a helpful tool for managing cash flow and ensuring timely VAT payments to HMRC.
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