Every business in the UK that’s registered for VAT knows that quarterly VAT bills can sometimes feel like a financial burden. Whether you're a startup managing tight margins or an established enterprise dealing with seasonal cash flow fluctuations, VAT payments can put pressure on your working capital. That’s where a Vat loan can help. A VAT loan is a type of business loan used exclusively to cover your VAT obligations to HMRC. It’s typically a short-term loan, ranging from 3 to 12 months, that pays your VAT bill directly to HMRC or provides you with the funds to do so. Loan amounts generally start from £1,000 and can go up to £1,000,000 or more depending on your business’s financial profile.