VAT Loan For Interior Designer In London

The Scenario

This interior designer approached us to enquire about their options on a business loan to cover their quarterly VAT bill.

While they could afford to front the bill with cash reserves in the business, they had earmarked those funds for a large ongoing project that would build significant revenue and reputation for the company.

But having never used a loan to cover their VAT before, they didn’t know why type of product they needed, what the process and costs would be, or how to compare options across the market.

Fortunately, they came to us for help.

The Solution

We advised that we can source specialist VAT loans that are designed for the clients’ exact scenario, and this would be much more cost-effective than using a standard business loan.

Thanks to the short-term nature of VAT accounting (3 month intervals), interest rates are very competitive for this type of finance, as it’s a lower risk for lenders.

Thanks to our help with the application and consolidating the paperwork for our client’s business accounts, lenders could see a healthy level of business stability and earning potential, and were happy to offer very competitive terms.

For our client, it meant that HMRC was paid immediately, while they could split the cost of their VAT bill over 3 months, directing their cashflow into more important channels for business growth – their key project.

This case highlights the practicality of VAT loans for business operations, and shows how using a broker can remove any uncertainty from the application process, and ensure you’re getting the best product and deal possible for you.