Quick answer — who we connect you to, and when it’s appropriate

If your restaurant faces a VAT or corporation tax bill that you cannot cover from existing cashflow, UK Business Loans can quickly introduce you to lenders and finance brokers who specialise in tax financing and short‑term business funding. We act as an introducer: you complete a short enquiry and we match you to providers in our network who understand hospitality cash cycles and tax timings. This is suitable for urgent, time‑sensitive liabilities (quarterly VAT payments, unexpected corporation tax bills, or one‑off lump sums) where you want options fast and don’t have time to contact multiple lenders yourself.

Important: completing an enquiry is not a loan application. It simply lets us share relevant details with lenders or brokers so they can assess suitability and contact you with options. Free Eligibility Check — Get Quote Now

What types of tax financing are available to restaurants?

VAT financing (short‑term VAT loans)

VAT loans are short‑term facilities designed to bridge the gap between when VAT is payable to HMRC and when your business receives customer receipts. Typical products include dedicated VAT loans, short‑term unsecured business loans and in some cases merchant cash advances (MCAs) tailored to hospitality. Terms are usually from 30 days to 12 months, depending on lender and need. Restaurants commonly use VAT funding to cover quarterly VAT liabilities during seasonal downturns or after a slow trading period.

Corporation tax financing

Corporation tax loans (or short‑term business loans for tax) help limited companies pay corporation tax liabilities on time. These facilities tend to be slightly larger and can have terms from a few weeks up to 12 months, sometimes offered by specialist tax lenders and flexible business lenders. Lenders structure repayments to match cashflow forecasts where possible.

Other short‑term options lenders provide

Related solutions you may be offered include bridge loans, working capital loans, overdrafts, invoice finance and asset finance (if you can use assets as security). Which option suits you depends on amount, speed, cost and whether security or personal guarantees are acceptable to you and your directors.

Which lenders and brokers work with restaurants for VAT / corporation tax funding?

We match restaurants to a mix of providers depending on the need and scale, including:

• Specialist tax lenders that offer dedicated VAT or tax payment loans.
• Alternative finance providers and peer‑to‑peer lenders for short‑term working capital.
• Challenger banks and regional lenders that can be more flexible than larger high‑street banks.
• Broking firms that arrange bespoke deals across multiple lenders (useful for complex or larger corporation tax needs).

Product names you may see include ‘VAT loan’, ‘tax loan’, ‘short‑term business loan’, ‘bridge to VAT return’ and ‘merchant cash advance’. We’ll match you to partners who have experience in hospitality, so they understand seasonal trade and booking patterns.

Learn more about our hospitality matching options on our restaurants industry page for restaurants business loans.

Get Started — Free Eligibility Check

Eligibility, evidence and onboarding — what restaurants need to provide

Different lenders set different criteria, but common requirements include:

• Business structure: limited company details (company number and registered address).
• Trading history: typically at least 6–12 months trading evidence; some lenders require 12+ months.
• Bank statements: recent 3–6 months business bank statements showing income and outgoings.
• VAT returns: recent VAT returns and details of the VAT liability you need funding for.
• Company accounts or management accounts: latest year-end accounts or up‑to‑date management accounts.
• Turnover and forecasts: monthly turnover and a short cashflow projection showing how you will repay.
• Proof of ID for directors and authorised contact details.

Deal‑breakers can include very poor bank performance (frequent overdrafts or bounced payments), insufficient turnover, or a lack of evidence to support repayment. Brokers and lenders will advise on any flexibility in their criteria.

Typical costs, terms and risks to consider

Costs and terms vary widely by lender, product and your business circumstances:

• Rates: tax‑specific short‑term funding is often priced higher than standard bank loans because of speed and short tenor. Expect a wide range — ask any lender for a representative example showing total cost and APR.
• Fees: arrangement fees, origination fees, exit fees and early repayment fees are common on specialist products.
• Security: some lenders may ask for personal guarantees, company charges or other security for larger amounts.
• Penalties: late payments can trigger high default charges and may affect future lending options.
• Impact on cashflow: a loan reduces future cashflow due to repayments — lenders will test affordability.

Always request a full breakdown of the total cost of credit and an example repayment schedule. UK Business Loans introduces lenders and brokers so you can compare quotes — we do not provide regulated advice or set rates.

If I need tax finance — alternatives to borrowing

Borrowing is not the only route. Consider these alternatives first, as they may be cheaper or less risky:

• HMRC Time To Pay (TTP): HMRC often agrees phased payment plans for VAT and corporation tax — contact HMRC early; it is frequently the most cost‑effective option.
• Negotiate payment dates with suppliers or stagger non‑urgent outgoings.
• Use an agreed overdraft with your bank (if available) — often cheaper than specialist tax loans.
• Invoice finance to unlock cash tied up in unpaid invoices (if you invoice larger clients).
• Director loans or short‑term internal measures — be mindful of company and tax implications.

If HMRC offers a payment arrangement, lenders may still advise whether a short‑term loan makes sense — but always compare the total cost versus an HMRC plan.

How UK Business Loans helps restaurants find the right tax finance

Our process — quick enquiry to matched lenders (three steps)

1. Complete a short online enquiry (takes around 2 minutes). You provide basic business details and the amount/purpose (VAT or corporation tax).
2. We match your enquiry to suitable lenders and brokers in our panel who specialise in hospitality tax finance.
3. Relevant partners contact you with eligibility feedback and quotes — often within hours during business days.

What you get from us

• A free eligibility check and introductions to lenders/brokers who understand restaurants.
• Multiple options to compare — speed matters for tax bills.
• Confidential handling of your details — we only share with partners relevant to your request.

Our service is free to you. We introduce businesses to lenders and brokers; the providers make the lending decisions. For a fast match, Get Quote Now — Free Eligibility Check.

Typical form fields we ask for when you start: business name, turnover band, amount required (from £10,000 upwards), company number (optional), contact details and postcode. This is not an application — it allows accurate matching to providers.

Real restaurant scenarios

Example 1 — Independent 40‑cover restaurant with a VAT timing gap

Situation: quarterly VAT due in 10 days after a slow trading quarter. The owner needed £18,000 to meet HMRC but had pending card receipts expected the following month.

Outcome: matched to a specialist short‑term VAT lender via a broker. Funds released in 48 hours at a fixed fee; loan repaid in full from the following month’s takings. Restaurant avoided HMRC penalties and preserved supplier relationships.

Example 2 — Multi‑site operator with corporation tax after asset disposal

Situation: a mid‑sized group owed corporation tax following sale of an asset and required a short bridge to manage timing of corporate cashflow.

Outcome: introduced to a broker who arranged a short‑term secured facility structured around projected receipts. This bought time to restructure cashflow without disrupting trading across sites.

Frequently asked questions

Will completing an enquiry affect our credit score?

No. Filling in UK Business Loans’ enquiry form does not affect your credit score. Lenders may carry out credit checks later if you proceed with an application.

Do you lend the money directly?

No. We introduce restaurants to lenders and brokers. Any loan is provided by a third‑party lender; they make lending decisions and set terms.

How quickly can I get funds to pay HMRC?

Timescales vary. Some specialist lenders can release funds within 24–72 hours after receiving required documents; others take longer. Start the enquiry early to maximise options.

What if HMRC offers a Time To Pay arrangement?

HMRC’s Time To Pay plans are often cheaper than borrowing. Discuss this with HMRC first. Lenders can advise if a loan still makes sense compared with HMRC terms.

Can new restaurants (under 12 months) get tax financing?

Possibly. Some specialist providers work with newer hospitality businesses, but eligibility depends on turnover, bank performance and lender criteria.

What minimum amounts are typically available?

UK Business Loans generally matches restaurants seeking from around £10,000 upwards for tax financing. Smaller amounts may be available via your bank or alternate products, but our panel focuses on larger short‑term needs.

Next steps — get a fast quote and protect your restaurant

If you have a VAT or corporation tax bill coming due, the fastest way to explore funding options is to start a free eligibility check now. Complete a short enquiry and we’ll match you to lenders and brokers who specialise in hospitality tax finance. There’s no obligation — the introductions are designed to save you time and get you a quote quickly.

Get Quote Now — Free Eligibility Check

UK Business Loans is an introducer connecting restaurants with lenders and finance brokers. We do not lend money or provide regulated financial advice. All credit decisions, rates and terms are made by third‑party lenders. Submitting an enquiry will not directly affect your credit score.