Example: VAT quarter
A business with a large VAT payment due may use tax funding to spread the cost while maintaining operational cash reserves.
This is an illustrative example only. Suitability depends on individual circumstances.
Finance
Manage tax and VAT obligations with confidence.
Tax and VAT funding may help businesses spread the cost of tax bills, preserving cash flow for operations.
Tera is a credit broker, not a lender. Any finance is subject to status and the terms of the finance provider.
Overview
Tax funding provides short-term finance to cover corporation tax, VAT or other tax liabilities, repaid over an agreed period.
How it works
Funding is provided to cover the tax liability, with repayments structured over months. The facility is typically short-term.
Common uses
- Corporation tax payments
- VAT quarter payments
- Self-assessment for businesses
- Cash flow management around tax deadlines
Benefits
- May preserve working capital
- Can smooth cash flow around tax deadlines
- Quick arrangement in many cases
Considerations
- Costs should be weighed against alternatives
- Only covers verified tax liabilities
- Terms are typically short
Information required
- Tax liability amount and deadline
- Recent accounts
- Existing borrowing details
Who may consider
- Businesses facing significant tax payments
- Companies with strong trading but tight cash timing
- Seasonal businesses with uneven cash flow
The process
- 1.Share tax funding requirements through Tera's assessment
- 2.Provide accounts and tax liability details
- 3.Review suitable funding options
- 4.Complete the provider's application
Tax and VAT funding FAQs
Ready to understand your funding options?
Start with a short assessment and tell us what your business is planning next.
- No obligation to accept an option
- Clear next steps
- Human support available