VAT Loans
VAT loans to help your business meet HMRC payments and stay on top of cash flow.
With Rise Funding, you can:
- Compare lenders, rates and fees
- Dedicated finance specialist assigned to you
- Funding in as little as 24 hours
Keep on top of your VAT bill
VAT loans provide a simple way to cover your quarterly VAT bill without disrupting your working capital. Whether you’re managing seasonal fluctuations, navigating growth, or protecting cash flow during slower periods, a VAT loan allows you to spread the cost over manageable monthly repayments.
The amount you can borrow and the repayment term will depend on your business’s circumstances. To make things easier, we offer tailored quotes from a range of lenders, supported by a dedicated finance specialist who can guide you through the process.
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* this interest rate is a 'flat rate' and not an APR. 6.9% rate and longest term are based on the absolute lowest risk businesses and do not include any lender arrangement fees that may apply. This calculator is purely for illustrative purposes only. Rates, terms and amounts will vary depending on your businesses circumstances.
What types of businesses can benefit from a VAT loan?
Any business that collects and pays VAT can benefit from financing its VAT bill.
Here are some common examples of businesses that use VAT loans:
Growing SMEs
Businesses scaling quickly often face rising VAT liabilities. A VAT loan helps manage cash flow during periods of expansion.
Seasonal businesses
Retailers, hospitality providers, and event-based businesses may experience uneven cash flow. Financing the VAT bill avoids pressure during quiet periods.
Cash-flow-sensitive businesses
Construction, manufacturing and professional services often deal with long payment terms. A VAT loan bridges the gap between invoicing and receiving funds. Spreading VAT payments over several months helps businesses plan with confidence and avoid lump-sum surprises.
Why would I need a VAT loan?
You might need VAT loan for these reasons:
Protect working capital
Rather than paying a large VAT bill in one go, a VAT loan lets you free up cash for payroll, inventory, marketing or operational costs.
Avoid HMRC penalties
If you’re concerned about meeting your deadline, VAT financing ensures your bill is paid on time, helping you avoid interest and late-payment penalties.
Smooth cash flow
VAT liabilities can be unpredictable, especially for businesses with fluctuating revenue. Financing the bill helps keep cash flow steady throughout the year.
Support business growth
Instead of allocating large sums to HMRC, you can reinvest in expansion, take on new staff, upgrade equipment, or fund new contracts.
Flexible repayment options
Lenders offer short-term repayment plans aligned with your cash cycle, usually 3–12 months. This gives you certainty and control over monthly costs.
How to register for VAT – a guide
If you’re unsure of how to register for VAT, or whether you might need to register, we have a complete guide that covers:
- How VAT loans work
- The types of VAT funding available
- How to apply and qualify
How to enquire about VAT loans with Rise Funding
Get a free instant quote
Use our free instant quote tool to get an immediate answer for how much you could borrow.
Approval within 24 hours
From a two-minute application, you could get the exact funding you need in as little as 24 hours.
Loan terms from 3 months to 6 years
We can find you loans that fit any scenario, from quick cash flow fixes to long-term projects.
Rates from
6.9%
Our rates make our loans manageable and ideal for any business.
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FAQs
The most frequently asked questions about cash flow funding.
A VAT loan is short-term finance that covers your VAT bill to HMRC. The lender pays HMRC directly or transfers the funds to you to make the payment. You then repay the loan in fixed monthly installments, usually over 3–12 months. This helps reduce the strain of a large quarterly payment and keeps cash flow stable.
It depends on your cash cycle and financial priorities. If you prefer to spread large tax payments over time, want predictable budgeting, or are facing temporary cash constraints, a VAT loan can be an effective solution. Many businesses use VAT finance during growth phases or when dealing with delayed customer payments.
Yes, some lenders offer VAT funding to newer businesses, but eligibility will vary. Lenders typically assess trading history, revenue, credit profile, and the size of your VAT liability. One of our specialists can help your find the right lender.
Checking your eligibility through Rise Funding will not affect your credit score. A formal application with a lender may involve a credit check, depending on their criteria.
Many businesses receive approval and funding within 24 hours, depending on the lender and the information provided.
We’ll help you find the funding you need
This quote won’t affect your credit score
A dedicated finance specialist assigned to you
Funding in as little as 24 hours
We’ll help you find the funding your business needs
We will do the heavy lifting for you, and what’s more:
- We’ll manage your application
- Your credit score is not affected by apply with us
- Offers could be within 24hrs