VAT Funding Solutions for UK SMEs

Flexible Finance to Ease Cash Flow Pressure

At Tor Business Finance, we understand how quarterly VAT payments can strain your business cash flow, especially when customers are slow to pay. That’s why we work with a carefully selected panel of trusted, non-bank lenders to offer tailored VAT funding solutions for UK small and medium-sized enterprises (SMEs).

Our specialist VAT loan options are designed to help you stay compliant with HMRC, avoid late payment penalties, and free up working capital to keep your business running smoothly. Whether you need a one-off loan or ongoing support, we can arrange fast, flexible finance that works for you.

What Is VAT Funding?

VAT funding is a short-term financing solution that enables businesses to cover their quarterly VAT liabilities to HMRC without putting pressure on day-to-day cash flow. Instead of using your own working capital or delaying other essential payments, you can spread the cost of your VAT bill over manageable monthly repayments.

Our VAT Finance Options

📅 Short-Term VAT Loans

Ideal for businesses facing a temporary cash shortfall, these VAT loans typically cover one VAT quarter (usually three months). You’ll benefit from:

  • Fast approval and funding

  • Fixed or flexible repayment terms

  • Improved cash flow management

  • No need to dip into reserves or delay supplier payments

💳 Revolving Credit Facilities

Need more ongoing flexibility? A revolving credit facility works similarly to an overdraft. You borrow what you need, when you need it, and only pay interest on the balance used. Perfect for businesses with seasonal cash flow or unpredictable revenue cycles.

Benefits include:

  • Flexible access to capital

  • Reusable credit limits

  • Interest-only options

  • Quick access to funds

➕ Additional Business Tax Funding

We also arrange finance for other tax liabilities, including Corporation Tax funding. Ask us how we can help your business stay tax compliant and cashflow healthy all year round.

👋 Why Choose Tor Business Finance?

  • Specialist SME finance broker

  • Access to non-bank lenders offering competitive rates

  • Fast decision-making and hassle-free applications

  • Personalised advice and tailored funding packages

  • Experienced in supporting businesses across the UK

Get Started with VAT Funding Today

Don’t let VAT deadlines create unnecessary pressure. Speak to the team at Tor Business Finance today for a no obligation chat about your options. Whether you’re planning ahead or need urgent help, we’re here to support your business.

VAT Funding Frequently Asked Questions

  • VAT funding is a type of short-term business finance that helps companies pay their VAT bill to HMRC without affecting their working capital. It allows businesses to spread VAT payments over several months instead of paying a lump sum every quarter.

  • VAT loans are typically available to UK-based SMEs, including limited companies, partnerships, and sole traders. Lenders may look at your credit profile, trading history, and recent turnover when assessing eligibility.

  • Many VAT loan providers can approve and release funds within 24 to 72 hours, depending on your circumstances and the documentation provided.

  • The main benefits of VAT finance include improved cash flow, reduced risk of HMRC penalties, flexible repayment terms, and the ability to preserve working capital for business growth.

  • Yes, some of our lending partners offer VAT funding for businesses with less than perfect credit. While rates may vary, we’ll work to find a solution that fits your situation.