- VAT loan is a short-term financing option to pay VAT on time
- Failure to pay VAT on time can lead to penalties and interest
- A business can apply for a VAT loan from a bank or lender
- Repayment periods are typically between three months and a year
- Eligibility criteria include being VAT registered and having a taxable turnover exceeding £90,000
- There are two types of VAT loans: standard VAT loan and VAT bridging loans
- It is advisable to compare interest rates, terms, and fees when looking for a lender
- Downsides include higher interest rates and increased financial strain on the business
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
