The Client
Background
We have been working with a mid-sized firm of solicitors since 2012, helping them manage their financial obligations smoothly and efficiently. Founded in 2003, this successful firm has grown considerably over the years.
The Challenge
Our client faced an ongoing challenge in managing their quarterly VAT bills. As the firm grew and took on more cases, their VAT liabilities increased. However, covering these payments while maintaining a healthy cash flow was becoming increasingly difficult. This was particularly important for a business with expansion plans, where available cash flow was critical for investment in staff, resources and operations.
While traditional bank loans appeared to be a potential solution, they presented several significant drawbacks:
- Lengthy Application Processes: Securing a loan from a bank involves a time-consuming process, often taking weeks to get approval. This posed a risk for the firm, as VAT deadlines were non-negotiable, and any delay could lead to penalties from HMRC.
- Overdraft Limitations: While an overdraft was another option, it came with similar fees and the potential to restrict cash flow even further. Moreover, it didn’t provide the long-term financial strategy the firm needed as it worked toward sustainable growth.
These challenges meant the firm needed a more flexible, cost-effective solution—one that would allow them to meet their tax obligations on time without jeopardising their expansion plans or cash.
How we helped
Our longstanding partnership is built on trust and speed, we have supported them by arranging four short-term loans each year to cover their VAT and Corporation Tax bills.
Our range of financial solutions helped our customers manage tax liabilities without impacting cash flow. We provided fast & flexible loan options for quarterly VAT bills and Corporation Tax payments, helping this legal practice and many others stay on top of their obligations.
VAT Loans
Our VAT loan offers a 3-month repayment term, with the first instalment deferred by one month. This allows solicitors to manage their cash flow more effectively without immediate financial strain.
Corporation Tax Loans
We offer tailored loans for Corporation Tax payments, with terms from 6 to 12 months. This flexibility ensures each firm can choose a solution that meets their needs.
Why Solicitors Prefer VAT Loans to Traditional Bank Loans
Although bank loans may sometimes offer slightly lower interest rates, many solicitors prefer our service due to several advantages:
Preserve Bank Facilities
Our loans provide an alternative funding line, helping solicitors preserve their main bank facilities for other essential needs. It also avoids giving a negative impression to financial partners by returning to the bank every quarter.
Direct HMRC Payments
We simplify tax payments by paying HMRC directly, reducing the risk of missed deadlines and penalties.
Supporting Compliance and Growth
Solicitors who use our VAT loan services can ensure they meet their tax deadlines while preserving financial stability. Our solution is more flexible and time-efficient than traditional bank loans, allowing firms to focus on growth and expansion.
Contact Us Today
Find out how VAT loans can benefit your legal practice. Call us on 01244 527300, email admin@whiteoakuk.com or visit our online chat to speak to a member of our team.
Talk to us
If you are looking to find the right finance for your business, contact us today.
