VAT Loans for Wholesale Businesses

When you are turning over millions in goods, your quarterly VAT liability is not a rounding error. A £2m turnover month at standard rate puts roughly £400k due to HMRC inside 30 days of quarter-end, and that same cash is usually committed to stock orders or supplier settlement terms running on 30 or 60 days.

A VAT loan works simply. The lender advances the exact VAT amount, you repay it in monthly instalments over the quarter (typically 3 to 9 months), and your core working capital lines stay undisturbed, whether that is an invoice finance facility or a stock finance arrangement. The advance is the full VAT liability, not a percentage of it. The lender pays HMRC directly, so the bill is settled on time regardless of your cash position on the due date.

The lenders comfortable with this product in wholesale are not the high street banks. They are specialist tax finance providers who understand that a large VAT bill in isolation does not signal distress; it signals volume. Underwriting tends to be quicker than a standard business loan because the liability is documented, quantifiable, and short-term. The VAT return is a known, filed figure, so there is far less for an underwriter to interrogate.

We are a broker, so we cannot promise a rate. Pricing depends on the size of the liability, your trading history, and which lender we place the deal with. What we do is put your deal in front of lenders who write this product regularly, rather than ones who will spend three weeks asking for management accounts before declining.