VAT Funding & VAT Loans for Professional Practices
VAT on fees invoiced.
Cash still to come.
VAT is usually due on fees when they are invoiced, whether or not the client has paid. For firms with long lock-up, every VAT quarter can mean paying HMRC before the money arrives.
- Confidential, no-obligation discussion
- Whole of market access
- We are a broker, not a lender
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail.”
Who this is for
VAT-registered practices of every kind. Especially relevant to law firms, barristers and chambers, architects and consultancies with long lock-up.
- Lender searchWhole of marketNot tied to any one lender
- Instant QuotesNo credit searchSee indicative quotes first
- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
- Our roleSpecialist brokerWe approach suitable lenders for you
Quick answer
Can I get a loan to pay a VAT bill?
Yes. A VAT loan pays the quarterly VAT bill to HMRC and spreads the cost over monthly payments. It helps professional firms whose VAT falls due on fees that clients have not yet paid, which is common where lock-up is long. We search the market for VAT funding that fits your quarters and cash cycle.
The pressure
VAT on fees invoiced.
Unless a practice uses cash accounting, VAT is accounted for on the invoices it issues, so the VAT on a bill falls due with that quarter’s return even if the client pays months later. For law firms, barristers, architects and consultancies with long payment cycles, that gap comes round every quarter.
The VAT bill has a fixed deadline, and paying it from the office account competes with salaries, the PII premium and partners’ drawings.
What can be funded
What it can cover.
“I will recommend them to other business owners in my network looking for funding in future.”
- 01 Quarterly VAT returns
- 02 A VAT bill after an unusually large billing quarter
- 03 VAT falling alongside corporation tax or a PAYE peak
How it’s often structured
Structured around the practice.
VAT funding usually pays HMRC directly and is repaid in monthly instalments, ideally before the next quarter comes round. Some firms arrange it for a single quarter; others return to it each quarter as lock-up dictates.
How we help
Not one lender. The right one.
VAT funding is offered by specialist tax lenders, premium funders and general business lenders, with very different costs and terms. We look at your VAT cycle and how quickly clients pay, then search the market for the option that fits.
Want a feel for the numbers first? Try our tax bill funding calculator.
- Whole of market accessHigh street banks, specialist and private lenders.
- Specialist understandingLenders who understand how practices earn and grow.
- Your case, properly presentedStructured and put to lenders suited to it.
- With you to completionFrom the first conversation to funds arriving.
What lenders will want to see
What lenders will look at.
- The VAT return and the amount due
- How quickly clients pay, usually from an aged debtor report
- Recent accounts and management figures
- Confirmation that VAT returns and payments are up to date
See our guide to funding corporation tax and VAT for how this compares with an HMRC payment plan.
Who this is for
VAT-registered practices of every kind. Especially relevant to law firms, barristers and chambers, architects and consultancies with long lock-up.
Questions
What firms usually ask.
Can I get a loan to pay my VAT bill?
Often, yes. VAT funding pays HMRC by the return deadline and is repaid in monthly instalments, so the practice isn’t paying the whole quarter from the office account at once. We search the market for funders suited to the size of the bill and how regularly you need it.
Can VAT on unpaid invoices be funded?
Yes. VAT is usually due on fees when they are invoiced, even if the client has not paid, and the VAT bill has a fixed deadline. Quarterly VAT funding can spread that payment while collections catch up. Firms with long lock-up often use it every quarter.
Would cash accounting remove the need for VAT funding?
Under the VAT Cash Accounting Scheme, eligible businesses pay VAT on sales when customers pay them rather than when they invoice. Your accountant can confirm whether your practice qualifies and whether it suits you. If it doesn’t, VAT funding can bridge the gap instead.
Can barristers fund VAT on fees they haven’t been paid?
Yes. Barristers registered for VAT can face a quarterly bill on fees billed but still outstanding, particularly on publicly funded work. Most barristers practise as sole traders, and borrowing of £25,000 or less by sole traders can be regulated consumer credit; we’ll tell you at the outset if that applies.
What if we’re already behind with VAT?
VAT funding is designed for returns that are current or coming up. If a payment is already overdue, speak to HMRC about a Time to Pay arrangement and to your accountant, and tell us at the outset so we can explain the options.
Success stories
VAT Funding in practice.
In our clients’ words
“I contacted them to apply for a VAT funding loan. Simon responded within half an hour of my request and was able to confirm funding within a 24 hour period. It was the first time I have had to apply for funding owing to a short-term cash flow problem, and he made the journey so easy. Kind and highly efficient: I would highly recommend them for a fast, professional service.”
Knowledge Hub
Read the guides.
Let's talk
VAT quarter coming up?
Talk to us before the return is due.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
Finance of £25,000 or less for sole traders and small partnerships can be regulated consumer credit. We'll tell you at the outset if that applies to your firm.
