This page is about borrowing against a pending VAT refund
Use this when HMRC owes you money and you can't afford to wait. If you need to pay a VAT bill to HMRC, see our VAT Loans page instead.
Why VAT timing creates cash flow pressure
You've paid suppliers, contractors, or stock invoices in full, including the VAT element. Your VAT return shows HMRC owes you a substantial refund. HMRC's stated target is to repay within 30 days, but in practice claims are often delayed, particularly when HMRC opens an enquiry, when the refund is unusually large, or when the return is your first since registering. While you wait, your working capital is locked up in money that's already legally yours.
For property developers, importers and exporters, a single quarterly reclaim can run into six figures. Waiting silently isn't a strategy. A VAT reclaim loan releases that cash now so you can pay the next supplier, take the next contract, or fund the next project.
Who this is for
Property developers
Reclaiming VAT on development costs, often substantial amounts tied up in HMRC processing.
Importers
Paying import VAT upfront and waiting on the offsetting reclaim through the next return cycle.
Exporters and zero-rated suppliers
Regular refund position that creates a predictable but painful cash flow gap each quarter.
Seasonal businesses
Heavy stock or refit spend out of season, with reclaims due as trade ramps back up.
How a VAT reclaim loan works
HMRC's target is to process VAT refunds within 30 days, but in practice delays are common, especially when HMRC requests additional information or opens an enquiry, which pauses the clock entirely. For property developers and exporters, this can mean tens or hundreds of thousands of pounds sitting in limbo.
A VAT reclaim loan bridges that gap. We arrange advance funding against your expected refund through specialist lenders on our panel. You receive the cash within days, and when HMRC pays the refund, it repays the facility automatically.
Underwriting is based primarily on the quality of the HMRC reclaim, not just your trading history.
The process
You submit your VAT return showing a refund due from HMRC
We arrange funding against the expected refund amount
You receive the cash, typically within 5 working days
When HMRC pays your refund, it repays the facility
Eligibility criteria
VAT-registered UK business
Filed VAT return showing a refund due
Reclaim of £10,000 or more (up to £500,000)
No active HMRC enquiry on the relevant return
Reasonable credit history (adverse considered case-by-case)
Clear supporting documentation for the reclaim
Key benefits
Underwritten on the reclaim
Funding is based on the expected refund amount, not solely on your trading history or credit score.
Up to 90% advanced
Receive up to 90% of the expected refund upfront, with the balance on receipt from HMRC.
Cash within 5 working days
HMRC's target is 30 days, but delays are common when claims are queried, complex, or unusually large. Access your money sooner without waiting on HMRC.
Property developers welcome
Specialist understanding of development VAT reclaims, one of the most common use cases.
Importers and exporters
If your business regularly generates VAT refunds, this can become part of your ongoing cash flow management.
Self-liquidating
Repaid directly when HMRC pays your refund. No long-term commitment or ongoing liability.
Typical scenarios we fund
Seasonal hospitality refit
A coastal hotel group invests £180k in an off-season refurbishment. The £30k VAT reclaim is bridged so they can pay the final fit-out invoices before peak season trading begins.
Importer paying upfront VAT
An electronics distributor pays import VAT on a six-figure container shipment. A reclaim loan releases the cash so they can buy the next consignment without waiting for HMRC.
Property developer
A small developer reclaims £85k of VAT on a residential conversion. Funds are advanced within a week so works on the next site can begin without delay.
What you'll need to apply
Filed VAT Return
Your submitted VAT return showing the refund amount due from HMRC
Supporting Documentation
Invoices and evidence supporting the VAT reclaim
Company Details
Business registration and director information
Refund Timeline
When you expect HMRC to process and pay the refund
Useful resources
Related at Funding Flow: VAT loans, business loans, VAT calculator.
Official references: gov.uk VAT repayments, gov.uk VAT payment deadlines.
Estimate your monthly cost
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VAT reclaim calculator
Get the cash from your VAT refund now instead of waiting for HMRC.
80%
One-off fee charged on advanced amount.
8 weeks
The wait time does not change the cost. The fee is a one-off charge on the amount advanced.
Calculations are illustrative only. Actual rates, terms and fees are deal-dependent and vary by lender, business profile, and security. Speak to your broker for a tailored quote.
Frequently asked questions
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