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Asset Finance

HP & Leasing Finance from
£10,000 upwards.

Business Loans

For Sole Traders, Partnerships,
LLPs & Ltd Co’s

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finance to your customers.

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    TVAF 7 West Mills Yard, Newbury, Berkshire, RG14 5LP
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    ASSET FINANCE
    & BUSINESS LOANS
    01635 785 400
    enquiries@tvaf.co.uk
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    ASSET FINANCE
    & BUSINESS LOANS
    01635 785 400
    enquiries@tvaf.co.uk
    Ready to talk? Get a Call Back
    MENU

    Asset Finance

    Asset Finance

    HP & Leasing Finance from £10,000 upwards.

    Business Loans

    Business Loans

    For Sole Traders, Partnerships, LLPs & Ltd Co’s

    Use a VAT loan to get your business get ‘cash-flow fit’

    16/12/2020

    As we see the end of 2020 in sight (thank goodness), it’s more important than ever to keep an eye on cashflow for 2021, especially as the range of Government support schemes (CBILS, Furlough and deferred VAT loans) draw to an end. Cashflow is the lifeblood for any business and many business owners don’t know that a VAT loan could be a great way for you to keep cash in the bank at a relatively low cost.

    Most VAT registered businesses will receive a bill for their VAT from HMRC quarterly. However, a VAT loan will allow you to pay off your VAT every month in three equal instalments. This will help you to keep cash in your business for longer.

    A VAT loan is a short-term (ie: 3 month) loan and you are required to pay the capital plus the interest, as you would with any other loan.

    If your VAT bill for the quarter ending 31 March 2021 is £60,000, a VAT loan will allow you to pay it back over three equal instalments of £21,000 each. The breakdown of how the loan and the interest payable works is shown below:

    VAT bill for the quarter ending 31 March 2021: £60,000
    Interest for the 3-month loan period: £3,663.21
    Documentation fee: £125
    Monthly instalments: £21,221.07
    Total fee repayable:      £63,778.2

                 

    VAT loans can work in two ways:

    1. The VAT loan is paid by the lender to HMRC directly and the customer repays the loan plus interest over 3 equal monthly instalments
    2. The customer can present the VAT Statement that they have paid to HMRC and TVAF can arrange for a loan to reimburse the customer directly, allowing them to benefit from having the cash in their business.

    Watch our short video about how VAT loans can help your business become cash-flow fit:

    A VAT loan can be used as part of your cash flow strategy and it’s possible to take out concurrent loans, so that you pay your VAT off in equal monthly instalments each month. Our long-standing law firm client uses VAT loans to improve their cash flow – find out how.

    If you’re concerned about paying your quarterly VAT return once the government’s VAT deferral scheme comes to an end, please get in touch with us to discuss how a VAT loan could help your business to get ‘cash flow fit.’

     

    Get in touch with the TVAF team via our website or call 01635 785 400.

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    Case Studies

    Read how we’ve helped other businesses arrange finance for business growth.

    Using VAT loans as a long-term cash-flow strategy

    Business Loans
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    Our long-standing TVAF client has used VAT loans as part of their cash-flow strategy for many years. When each quarterly VAT bill is due, our client contacts us to  arrange a VAT loan which allows them to spread the cost of their VAT payments over a three-month term.
    READ MORE

    Loan funding for tech company through a restructure/growth phase

    Business Loans | Finance Partners
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    READ MORE

    Upgrade to fleet for local Ice Cream business

    Asset Finance | Finance Partners
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    READ MORE

    Hire Purchase loan supports successful business through COVID-19 lockdown

    Asset Finance | Finance Partners
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    Several TVAF clients return to us as their business grows or their circumstances change. Our Essex-based road marking client needed to purchase a second-hand road sweeper for £53,000 to allow them to clear up after they’ve put white lines and road markings on the motorways.
    READ MORE

    Asset funding secured for rapidly growing start-up

    Asset Finance | Finance Partners
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    A great example of how TVAF can provide competitive asset finance deals for a start-up who have previously been denied asset finance. We were introduced to this mobile tyre fitting company via the client’s accountant, who was based in Kent. Having started trading only three months earlier, he was in the enviable position of needing to secure £12,000 of commercial vehicle funding for a second vehicle for a new member of staff. Our client had found a Nissan Navara Acenta at an independent 4x4 dealer and needed competitive asset finance to manage his cashflow.
    READ MORE

    SEE ALL CASE STUDIES

    Get in touch

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      REGISTERED OFFICE 7 West Mills Yard, Newbury, Berkshire, RG14 5LP TEL: 01635 785 400 FAX: 0333 12 12 140 EMAIL: enquiries@tvaf.co.uk
      PLEASE NOTE Thames Valley Asset Finance Limited is a credit broker and not a lender. Authorised and regulated by the Financial Conduct Authority. Company Registration Number: 5880332
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      © 2017 Thames Valley Asset Finance. All rights reserved.
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