VAT Loans explained with JD Capital Finance

March 5, 2024
Andrew Knowles

As a business owner, you understand how demanding and frustrating it is to pay back VAT every quarter, especially when cashflow is tight. 

You are required by law to pay VAT quarterly and if you fail to do so, you may face costly fines imposed by HMRC. If you fail to pay your VAT bill, you’re also more likely to be subjected to a VAT inspection in the future. But a VAT loan can save you from paying fines and from being on HMRC’s radar.  

A VAT loan is a type of unsecured short-term business loan which helps business owners cover their VAT bills if they are unable to. 

When you’re unable to meet your tax bill, VAT finance is the solution for your business. We understand that it’s imperative you pay the VAT due on time. This is why JD Capital Finance focuses on creating funding opportunities for businesses in various industries. We want to help businesses like yours to achieve growth and become more profitable. 

See how we can help you and your business.  

How a VAT loan can benefit your business

We pride ourselves in the work that we do for you, providing a fast and prompt response to your funding application. Our services have helped hundreds of clients, providing a safety net to their businesses. Our flexible funding and VAT loans can take away some of the stress when dealing with HMRC. 

  • A VAT loan stops you from incurring costly fines on late VAT payments.
  • A VAT loan makes it easier to regulate and manage your cashflow.
  • It could be used to promote business growth as there will be more working capital to reinvest in your business.
  • It’s a quick and simple process.

We understand how important it is to keep up to date with VAT payments. This is why our dedicated financial specialist is there with you, guiding you through the application process and providing support.

Get in touch with our friendly team for a quote.

How does a VAT loan work with JD Capital Finance?

There are many factors driving business owners to seek business finance. The most common is slow cash flow in the business. 

For example, a clothing retailer charges buyers VAT on each piece of clothing sold. The business owner collects this tax (effectively on behalf of HMRC) and every quarter is required to pay the total sum back to HMRC. However, the business owner needs to buy stock for ongoing sales. Usually, they reinvest the money they claim for VAT into their business instead of putting the money to one side. 

When the time comes to pay the VAT bill, it is often the case, the business is not able to afford the VAT repayment. This creates a cashflow problem. 

A solution to this is VAT finance, otherwise known as a VAT loan. A business can apply for a VAT loan through JD Capital Finance who will source the most appropriate funder for their needs. 

Once the the application is successful, the lender will pay the VAT directly to HMRC. Then, the business repays the lender in monthly instalments over a pre-agreed term - just like any other typical loan. 

A VAT loan allows you to reinvest the money back into your business and allows you to take control of your finances and manage your cashflow more effectively. 

Businesses can access funding from £1,000 to £500,000, depending on their circumstances, which is repaid with interest.

JD Capital Finance's VAT loans are:

  • Quick to arrange and are usually processed within 24 hours.
  • They require minimal paperwork.
  • Fixed monthly repayments. 
  • They’re accessible to most businesses who require assistance with their VAT bills.

The application process is simple with JD Capital Finance. You apply for a loan with us, we assess your application within 24 hours, and the funds are used to pay HMRC direct.

Flexible, affordable finance for your business

Fast, flexible funding to elevate your business.
Get the finance your business deserves.

Which businesses are eligible for a VAT loan?

VAT loans are available to businesses in most sectors. A standard credit check and evaluation of the business's financial situation are the most important eligibility criteria.

To apply for a VAT loan, you can contact us here and our friendly team will get back to you within 24 hours. 

How to apply for VAT funding with us

To apply for VAT funding with us, you have to follow four easy steps:

Step 1: Get in touch with our financial specialists to discuss your funding options.

Step 2: We find you a lender best suited to your needs and apply for funding on your behalf.

Step 3: We take care of the documentation and paperwork for you, as well as liaise with the lender on necessary processes.

Step 4: Sit back and relax while the funds are released, and your outstanding VAT is being paid off directly to the HMRC.


We find the funds your business needs - fast and efficiently. Talk to us and get a quote

Jamie Davies
Managing Director

As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients. 

Share this article

The first steps towards the funding your business deserves
Tell us a bit more about your requirements
Get started
Social media
Disclaimer: Spark Finance Ltd (Registered office - 18 John Stow House, London, England, EC3A 7JB, Registered Number 10128297) helps UK firms access business finance. Spark is a credit broker, not a lender. Any quotes provided are for information purposes only and subject to status and separate lender terms and conditions. Applicants must be aged 18 and over.  Guarantees and Indemnities may be required.  Spark Finance may receive commission from lenders  which may vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.

Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority in the UK (FRN 958123).