Flexible finance to help manage your business tax payments
Business Tax Funding
Business tax bills can place significant pressure on cash flow, particularly when large payments fall due at the same time as wages, suppliers and other operating costs.
Business tax funding can help eligible businesses spread the cost of upcoming tax liabilities rather than paying the full amount from existing working capital.
Principal Business Finance can help businesses explore funding for VAT, Corporation Tax and Self Assessment tax bills, helping to protect cash reserves and maintain working capital for day-to-day business requirements.
What Is Business Tax Funding?
Tax funding is a form of business finance designed to help fund an upcoming tax liability. Instead of using a significant amount of available cash to settle the bill in one payment, eligible businesses can use finance and make repayments over an agreed period.
Eligibility, repayment terms and the amount available will depend on the finance provider and the circumstances of the business.
VAT Funding
A large VAT bill can create short-term pressure on working capital, particularly for growing or seasonal businesses.
VAT funding can provide the capital required to meet an upcoming VAT liability while allowing the business to repay the finance over an agreed period.
This can help businesses retain more cash within the company for wages, stock, suppliers, equipment and other operating costs.
Corporation Tax Funding
Corporation Tax can represent a substantial annual cash outflow for profitable businesses.
Corporation Tax funding can help eligible companies finance their upcoming tax payment rather than using a large proportion of their available cash reserves at once.
This can be particularly useful where the business wants to preserve working capital for growth, investment or its normal operating requirements.
Self Assessment Tax Funding
For eligible business owners, partners and sole traders, a Self Assessment tax bill can create a significant cash requirement, particularly when combined with payments on account.
Funding may be available to help manage an upcoming Self Assessment liability and spread the cost over an agreed repayment period.
How Much Tax Funding Can My Business Apply For?
The amount available will depend on the tax liability, lender criteria and financial circumstances of the applicant. Finance providers may consider factors such as:
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Tax amount
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Turnover
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Trading history
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Profitability
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Cash flow
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Credit profile
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Existing borrowing
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Affordability
Supporting documents may also be required to evidence the tax liability and financial position of the business.
Why Principal Business Finance?
Principal Business Finance helps UK businesses explore a wide range of commercial finance solutions, including funding for upcoming tax liabilities.
We take the time to understand your business, the tax payment due and your funding requirements before exploring suitable options from our lender panel.
Whether you need funding for VAT, Corporation Tax or Self Assessment, our team can support you throughout the finance process from initial enquiry through to completion.
Need Help Funding an Upcoming Tax Bill?
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