Yes. Unexpected corporation tax adjustments, VAT arrears, or PAYE corrections can arrive with little warning and require payment quickly. A short-term facility lets your company settle with HMRC on time — avoiding surcharges and enforcement action — while keeping day-to-day cash flow intact.
When tax demands become a cash-flow problem
Tax bills are not always predictable. A revised assessment, a disallowed deduction identified in an HMRC enquiry, or a timing difference on VAT can produce a demand that falls outside your normal reserves. Even well-run businesses can face a genuine short-term mismatch between when revenue is due and when a tax liability must be paid.
How a Business Loan helps
A Credicorp Business Loan provides a lump sum to settle the liability. You then repay over a fixed short term from normal trading income. This is generally preferable to accumulating HMRC late-payment interest or, worse, entering Time to Pay arrangements under duress, which can affect your company's credit profile and trigger further scrutiny.
What we look at
- The size and nature of the demand relative to the company's trading position
- Whether the demand is final or still under review or appeal
- The company's recent revenue run rate and debtor position
- Any existing HMRC instalment agreement already in place
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Bridging a grant payment while you wait for funds to arrive, Funding a vehicle repair or unplanned fleet downtime, Funding stock for a new product line launch