How White Oak UK is helping SMEs overcome uncertainty with user-friendly VAT business loans

Key Insights on SME Challenges:

• A quarter of all trading businesses suffered a drop in turnover between July & August 2024
• Only 35% of small businesses are feeling confident about their growth & performance
• Cybersecurity breaches continue to increase for medium-sized businesses
• 39% of SMEs have sought external financing in the last 12 months
• VAT Business loans can help free up capital for essential investments

Daunted, overwhelmed and all-consumed over business loans?

As we move between seasons and look ahead to 2025, small and medium business owners are concerned about the UK’s current economic state. More than 25% of all trading businesses reported a drop in turnover from July to August; likely leaving over a quarter of you duly concerned as to how you might finance essential developments going forward. The UK Business Confidence Report 2024, carried out by payment platform Sum-up, also recently revealed that less than a quarter of small businesses feel very confident about their future, with another 21.5% feeling uncertain of what to expect

The future is…half bright? SMEs continue to face barriers and threats to essential growth

Along with concerns about growth, deadlines and overheads, there are the mainstay concerns of cyber security and flooding season. Cybersecurity breaches continue to rise, with 70% of medium-sized businesses reporting a breach in 2024, compared to 50% in 2023. This cost each business on average £10,830 per breach, demonstrating a clear need for effective infrastructure and annual training for proper cyber hygiene. On the other hand, flooding is a very real threat to all businesses with tangible premises and assets. Even SMEs not based near lakes or rivers are subject to the hazards posed by surface water and flash floods. Environmental experts in flood mapping and risk analytics, Fathom Global, have advised that flood risk is set to rise by 25% by 2050, with the regions of Cardiff, Windsor and Maidenhead experiencing the greatest increase.

These risks, coupled with the ongoing cost of living crisis, continue to pose a threat and demand both attention and investment for SMEs, essentially soaking up cash and stifling growth.

The benefits of a Vat Loan

VAT Business Loans can act as an umbrella for your rainy day

When faced with threats, stagnancy and unexpected spending, VAT business loans can provide necessary assistance. Allowing you to spread the cost of your VAT bill over a manageable period, a VAT loan can:

• Help with those seasonal revenue fluctuations like those seen in August this year.
• Give you peace of mind that your obligations are met during times of emergency spending. I.e. as a result of cybersecurity attacks, flash flooding or other losses
• Free up capital for spending on development plans, growth, recruitment and other investments,

Does it mean my business is failing if I have to get a VAT loan?

Absolutely not. Research published by Statista revealed around 39% of SMEs have applied for a bank loan or a bank overdraft facility in the last 12 months. Business loans are a common survival tool and allow you to breathe easily while saving the working capital for the fun stuff. However, our VAT loans come without the lengthy application process and other drawbacks of a traditional bank loan or overdraft.

Can a VAT business loan actually help me?

Yes – a VAT business loan can free up your finances for technological transformation and other essential investments. Recently, one of our VAT loans enabled a successful UK law firm to remain ahead of their payment deadline, allowing them to redeploy capital in other areas of their business.

Am I eligible for a VAT business loan?

Eligibility criteria and terms for VAT business loans will vary among lenders, but typically, businesses with a trading track record and regular credit payment history are the perfect candidates. White Oak UK will assess your creditworthiness, financial stability and anything else that might affect your ability to repay the loan.

• have been trading for 3 years or longer.
• have a track record of profitability.
• only require the loan as a short-term solution.

Further credit criteria will be considered during the application process

Talk to us

If you are looking to find the right finance for your business, contact us today.

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