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Local Firm of Accountants - VAT Loan

Sector: Accountants | Value: £100,000
Equipment type: VAT Funding | Term: 3 Months

This accountancy firm needed our help to relieve pressure on their cash flow.

Problem:

The acquisition of a local firm of accountants, coupled with additional head count and recruitment of a tax partner, placed significant pressure on cash flow for this large established city centre accountancy practice.

 

Approach:

We identified they had two quartely VAT returns applicable for the business each quarter. One registered for the Limited Company and the other for the partnership which acted as a service company for the Limited entity, managing all its wages and payments.

 

Solution:

An unsecured VAT loan repayable over 3 months for both the Ltd Company and Partnership was arranged both with a one month repayment holiday. Guarantees were taken from the Directors of the Limited company. Both facilities have the ability to renew on a quarter by quarter basis to suit the client.