Legal Business Loans – Case Study

legal firm financing
Published February 16, 2023

At V4B Business Finance, we work with companies of all sizes. In this case, we were working with a very large law firm that is a major player in their field. We have been in contact with them for years and the timing was right to set up a rolling VAT facility. This not only helped spread the cost of their VAT, it also removed the need for them to apply again the next time they need funding.

This is something we have helped a variety of companies with in the past, so securing a rolling line of credit of this size was no trouble at all. Our experts were able to get the law firm a great deal and because we have built up a good relationship together, the firm can move forward confident in the knowledge that they got the best deal available.

With their new loan, the business will have better control over costs. This allows them to control cash flow without having to keep a large amount of capital set aside.

Rolling VAT Loans For Business

Our loan advisors were able to set up a rolling VAT facility of £500,000 for the law firm. This means they were able to focus their expertise on the legal issues of their clients rather than worrying about VAT funding. This is particularly important for any clients that use billable hours. Every hour they spend on their taxes is an hour they aren’t making money.

Rolling credit is a great option for a variety of businesses. The money is available to you on a continuous basis, but you only pay interest on what you actually use. That means you have plenty of cash available without having to pay for the privilege.

Results

We got the firm a great rate with the term they wanted for their rolling VAT loan. They had access to the money within 48 hours and there were no personal guarantees. That means no individual in the company would be liable if there were an issue with the loan. This all means the company has the money to invest and grow without worrying about keeping cash on hand for their VAT.

Plus, the monthly loan repayments are easy to budget around so they can plan their financial future.

Takeaways

Businesses have to pay taxes. The problem is that paying a large sum all at once to settle a tax bill can hurt your cash flow. With a VAT loan, you can spread your repayments over 3 or more months and still invest in other areas of your business. That is particularly helpful for seasonal industries or businesses that have fluctuations in their revenue.

Using a line of credit is particularly advantageous because you can secure your funding long before it is needed without having to repay the loan immediately. Plus, the funding may still be available for your next tax bill.

If your company has been putting off growth or investment because of concerns about tax bills, contact V4B Business Finance today. We can find you the right loan with payments you can afford at a great rate.

At V4B Business Finance, we can also offer loans to help your business buy new equipment, upgrade your IT or refurbish your current premises. This allows your company to retain its own money for longer so it can invest in staff or new projects.

What would you purchase for your firm if you could unlock the money straight away?

  • Fast access to funds
  • Flexible payment options
  • Dedicated account managers
  • Smooth your cash flow
  • No arrangement fees
  • Tax relief on interest element

You may also like