VAT funding
Short-term loans timed to your VAT bill. The lender pays HMRC on your behalf or transfers the cash to you; you repay over 3 to 6 months out of next-quarter cashflow. Useful when a VAT bill collides with a thin cash month.
Director, FundBiz
Oliver leads FundBiz's specialty finance comparison and matching engine. With a background in UK commercial finance, he oversees lender partnerships, eligibility logic and post-decline routing.
Last reviewed: 12 June 2026
At a glance
- Ticket size
- £5,000 to £500,000
- Typical rate
- From 1.5% to 3.5% per month
- Term
- 3 to 6 months (one VAT cycle)
- Repayment
- Equal monthly
- Decision
- 24 to 72 hours
- Security
- Usually unsecured + PG
When VAT funding fits
- Seasonal businesses where the VAT bill lands during a thin trading month.
- Businesses spending heavily ahead of revenue (stock for the new season, project investment).
- Recruiters and contractors with delayed end-client payment cycles.
- Avoiding HMRC late-payment surcharges (which are expensive).
When it does not
Recurring VAT shortfall. If the same gap appears every quarter, VAT funding is treating a symptom. The right answer is restructured working capital (term loan, invoice finance, MCA against ongoing card flow) rather than rolling VAT loans.
Lenders we route to
Specialist VAT funders plus mainstream working-capital lenders that offer it as a sub-product. iwoca, Fleximize and a handful of HMRC-focused specialists handle most of the UK market.
Apply
Open VAT loan eligibility checker →Last reviewed: 12 June 2026.