Finance to pay outstanding tax arrears - InvestGrow Financial Services

Almost all businesses will need finance at some point. This could be to cover stock purchases, wage bills or rent or simply to cover short term cash flow issues. Perhaps you failed to budget effectively, or you have been hit by unexpected circumstances? No matter what the case may be, there are options available such as taking out finance to settle tax arrears, these include:

Tax Loans

Getting a loan to cover tax arrears is a way to spread out the payments over a fixed term. The amount generally can be paid either directly to HMRC or into an account of your choosing. Loans for this purpose are usually unsecured, meaning you don’t have to use company assets as security against it, but you will probably be asked to provide a personal guarantee as a director of the business. Depending on the amount you borrow, the repayment terms will vary from as little as three months, six months or as long as 12 – which frees up cash for other areas of business.

Asset Based Finance

As the name suggests, this involves using a business asset – which could be your premises, your plant or your equipment – as collateral. Of course, this increases your risk, as you could lose the asset if you fail to make the repayments, but reduces our risk – so you stand a higher chance of acceptance and will benefit from a lower rate of interest. With this type of finance, we work with panels of lenders, so we can find the finance partner that is most in tune with your business sector and willing to offer the most advantageous deal.

Invoice Finance

Invoice finance may be suitable, too. This unlocks the capital in your accounts receivable, giving a quick advance on pending cash. If you have a lot of customers with outstanding invoices but need working capital now, borrowing against invoices can help. Invoice finance lets you use your unpaid invoices as security for funding. So, instead of waiting weeks or months to get paid, you can secure a percentage of the value of your invoices quickly – in some cases within 24 hours.

Depending on their own risk criteria, an invoice finance company will typically provide up to 90% of the value of your invoices immediately. These funds can be used to bolster your cashflow or to invest in an area of your business.

For further information and advice on obtaining finance to pay outstanding tax arrears please contact us here.

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