The new VAT loan — which is for a maximum three-month term — recognises that businesses will want to both pay their VAT bills as quickly as possible and free up valuable cashflow. 

The facility also understands the need for payments to HMRC to be made on time, so there is a fast and light-touch application process.

The Just Cashflow VAT loan includes:

• from £10,000 upwards 
• interest from 1.5% per month 
• simple and affordable repayments.

“All businesses appreciate it’s important to pay their quarterly VAT bills on time, and HMRC shows little tolerance for late payments,” said Martine Catton, chief operating officer at Just Cashflow (pictured above).

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“The majority of businesses set money aside for VAT bills they know are coming their way but, inevitably, there is the temptation to dip into that pot — especially when faced with the type of pressures Covid has introduced.

“The government has recognised this with its Covid VAT Payments Deferral Scheme, but it only covers payments due between 20th March and 30th June 2020. 

“We are introducing our facility now knowing it will be valued when the next and subsequent quarters’ VAT bills are due on top of deferral repayments having to be made. 

“It’s important for lenders to anticipate the Covid challenges SMEs are going to be facing and provide the flexible finance facilities they need. 

“This will leave businesses better placed to make a major contribution to the UK’s economic recovery.”

In September, Just Cashflow upped its lending limit on its revolving credit facility to £1m to support SMEs.