When the Valuation Office Agency revalues your property, a new rateable value can take effect mid-year with little warning. A quarterly business-rates demand that was £8,000 last year might arrive at £14,000 this year (illustrative, not a quote). If the increase lands in a tight trading month, it can create a genuine cash crunch even for a healthy company.
Why rates bills catch businesses out
Business rates are billed quarterly or, in some councils, as a single annual charge. Transitional relief can phase in increases gradually, but not all businesses qualify, and the first adjusted bill can still be sharply higher. Unlike corporation tax, you cannot defer payment simply by asking; the council will add interest and may instruct enforcement agents within weeks.
How a short-term facility helps
A Credicorp facility can give your company the funds to pay the rates demand on time, then let you repay over a period that matches your trading cycle. The cost of a short-term facility is typically far lower than the penalty and agent fees the council would add if you defaulted — illustrative comparison only, not a quote. You keep trading normally while repaying in structured instalments.
Longer-term steps alongside finance
- Challenge the rateable value through the Check, Challenge, Appeal process if you believe the valuation is wrong.
- Apply for Small Business Rate Relief or any transitional relief you may have missed.
- Build a rates reserve into your monthly cash plan to smooth future quarters.
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: Using finance to cover business rates and rent, Covering an unexpected cost with business finance.