A VAT return falls due every quarter whether or not your customers have paid you. When the bill lands before the cash does, many companies face a short, predictable squeeze. A Credicorp facility can spread that liability over an agreed term so the payment to HMRC goes out on time and your day-to-day operating cash stays intact.
Why companies use funding for VAT
- The liability is fixed and dated, but incoming receipts rarely line up with it.
- Paying late risks HMRC surcharges and a poorer compliance record.
- Borrowing to smooth a known obligation is often cheaper than the disruption of an unpaid invoice run.
How it works
You apply as a limited company or LLP for a business purpose. If we make an offer, the rate and term you see are the ones shown in your offer document. You draw the funds, settle HMRC, then repay over the agreed schedule. We do not take personal guarantees from directors, so the obligation sits with the company.
Things to keep in mind
Funding a tax bill is sensible only when the underlying cash gap is genuinely timing, not a structural shortfall. Because Credicorp lends outside the FCA consumer-credit regime, this facility is not covered by the Financial Ombudsman Service or FSCS. Review the figures in your offer against your forecast before you draw. For more on this use case, see VAT bill finance.
See also: Funding an MOT bay or fleet servicing equipment, Funding for restaurants and cafés and Funding a quarterly rent or business rates bill.