Harrogate based business JM Supplies have recently funded their quarterly VAT bill thanks to the help of commercial finance brokers ABL Business.
JM Supplies specialise in manufacturing high-quality Audio-Visual furniture, lecterns and rack units for learning and communication spaces. Andrew Mitchell Managing Director of JM Supplies and Alex Beardsley from ABL Business have worked together for many years so knew they would be in good hands when it came to needing help with commercial finance.
Andrew decided to take advantage of a finance offering that allows them to spread the cost of their quarterly VAT bill into 3 manageable monthly payments instead of paying one large lump sum up front.
Most businesses find that when the VAT bill comes in, such a large amount of money leaving in one go can greatly affect a business’s cashflow. VAT funding is there to ease business owners minds and help them to stay on top of their cashflow.
JM Supplies got in touch in February to first fund their £18k quarterly VAT bill. As businesses can incur charges from HMRC for late payments, ABL had to work fast to ensure the application was accepted by a lender before the deadline date.
When JM Supplies next quarterly VAT return came in, they passed it straight on to ABL who were then able to get in touch with the lender and arrange for the VAT Funding facility to be used again. As an agreement had already been set up, JM Supplies were able to leave it in the hands of ABL and the lender, leaving them to just pay their 3, monthly instalments.
Speaking about VAT Loans, Andrew Mitchell, Managing Director of JM Supplies Said: “Due to the seasonal nature of our business, VAT bills can vary greatly from one quarter to another. Spreading the cost over 3 months really helps my cash flow and gives me peace of mind. The process with ABL business is easy and they act very quickly.”
With a VAT loan there’s no obligation to use it again, so a rolling facility is not set up. You can opt to use it just once or keep using it each quarter. Once the VAT return comes in, get in touch with your broker who will arrange with the lender for the payment to be made to HMRC as well as when your monthly payments will be due.
Joint Managing Director of ABL Business, Alex Beardsley said “As a business owner you tell yourself you need to save for your VAT bill but then other things come up and it slips to the bottom of the pile, when that bill comes through it’s a large amount of money to part with all at once. VAT Funding means that you don’t have to worry about it. HMRC get paid on time and you stay in control of your cashflow, it’s a win win.”
It’s one less thing they have to worry about. If your quarterly VAT bill is over £10,000 and you want to spread the cost into monthly manageable payments, ABL Business can help.