Top VAT and Tax Loan Lenders for UK SMEs

Jonathan Pike
December 11, 2025
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Category
Awards
For UK franchise buyers and operators, this guide compares loan periods and amounts, APRs, and terms across leading providers, with a focus on eligibility and fit. Amounts that could not be verified are left blank prices accurate as of 2025-12-11.

Quick Compare:

1Funding AgentFunding Agent is a UK business finance broker that helps SMEs access funding from a panel of lenders.£10,000–£1,000,000; 5%–15% APR; 6 to 72 months
2White Oak UKWhite Oak UK offers SME business finance solutions across the UK, specializing in VAT and tax loans.£25,000–£2,000,000; 7.5%–18.9% APR; 12 to 60 months
3Just CashflowJust Cashflow provides flexible funding solutions aimed at SMEs to manage their cash flow effectively.£10,000–£1,000,000; 9.5%–29.5% APR; 6 to 60 months
4FleximizeFleximize provides award-winning business loans to SMEs in the UK, with innovative and flexible funding options.£10,000–£500,000; 10.8%–36% APR; 3 to 60 months
5Portman FinancePortman Finance provides comprehensive business finance solutions, including VAT loans, across various industries in the UK.£10,000–£2,000,000; 6.9%–30% APR; 3 to 72 months
6CapalonaCapalona is an online business finance broker that facilitates loans from a wide range of UK lenders for SMEs.£1,000–£10,000,000; 6%–20% APR; 1 to 120 months
7Ignition CreditIgnition Credit offers flexible asset and vehicle finance solutions tailored to SMEs in the UK and Wales.£5,000–£250,000; 7.5%–17.5% APR; 12 to 60 months
8Acorn Business FinanceAcorn Business Finance provides bespoke finance solutions to SMEs, specializing in emerging business funding.£10,000–£500,000; 6%–30% APR; 3 to 60 months
9Iwo­caIwoca provides fast, flexible credit to SMEs to support business growth and cash flow needs across the UK.£1,000–£1,000,000; 20%–49% APR; 1 to 24 months
10Nationwide Corporate FinanceNationwide Corporate Finance is the UK's direct lender offering competitive business loans and finance options tailored to a wide range of industries.£10,000–£10,000,000; 5.8%–15% APR; 12 to 60 months

1. Funding Agent

Funding Agent Funding Agent is a UK business finance broker that helps SMEs access funding from a panel of lenders. It facilitates various loan types suitable for franchise operations, including small to large amounts with flexible repayment options. The service offers quick access through brokered arrangements, which can be beneficial for fast decision needs. The focus is on connecting borrowers with lenders to find tailored terms.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £1,000,000
  • Min APR: 5%
  • Max APR: 15%
  • Loan Duration: 6 to 72 months⌛

Services & Industries

  • Finance Types: Working Capital Loan, Business Expansion Loan
  • Industries: Technology, Healthcare, Manufacturing

Pros

  • Competitive APR
  • Flexible terms

Cons

  • Eligibility criteria apply

Sources: https://www.fundingagent.co.uk

2. White Oak UK

White Oak UK White Oak UK offers SME business finance solutions across the UK, with options for VAT and tax loans. Its offerings are suitable for franchisees needing quick funding with predictable terms. The service supports a range of industries and loan sizes, often with flexible repayment schedules. This makes it a versatile choice for sector-specific or broad business needs.

Loan Details

  • Min Amount: £25,000
  • Max Amount: £2,000,000
  • Min APR: 7.5%
  • Max APR: 18.9%
  • Loan Duration: 12 to 60 months⌛

Services & Industries

  • Finance Types: VAT Loan, Business Expansion Loan
  • Industries: Various

Pros

  • Flexible terms
  • Quick funding

Cons

  • Higher APR for lower credit scores

Sources: https://whiteoakuk.com/

3. Just Cashflow

Just Cashflow Just Cashflow offers flexible funding options suitable for SME growth and cash management. It provides quick access via brokered solutions, which can help franchise operators with cash flow timing. The services include various short-term lending options designed for businesses seeking adaptable finance with clear terms.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £1,000,000
  • Min APR: 9.5%
  • Max APR: 29.5%
  • Loan Duration: 6 to 60 months⌛

Services & Industries

  • Finance Types: Revolving Credit Facility, Merchant Cash Advance
  • Industries: General Business Services

Pros

  • No early repayment fees
  • Flexible credit terms

Cons

  • Relatively high APR

Sources: https://uk.linkedin.com/company/just-cash-flow

4. Fleximize

Fleximize Fleximize provides flexible business loans suited for SME needs, with options for quick approval and custom repayment plans. It caters to businesses seeking adaptable funding solutions with moderate to large loan sizes. The service emphasises fast processing and flexible terms to support growth and operational needs.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £500,000
  • Min APR: 10.8%
  • Max APR: 36%
  • Loan Duration: 3 to 60 months⌛

Services & Industries

  • Finance Types: SME Loan, VAT Loan
  • Industries: Retail, Services

Pros

  • Customizable loans
  • Top-up facilities available

Cons

  • High APR for startups

Sources: https://fleximize.com/

5. Portman Finance

Portman Finance Portman Finance offers a broad range of business finance options, including VAT and term loans. Its services are suitable for franchise operations requiring structured finance. The provider supports multiple industries with flexible repayment options and various loan amounts for growth or working capital needs. It aims to facilitate quick, straightforward funding solutions.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £2,000,000
  • Min APR: 6.9%
  • Max APR: 30%
  • Loan Duration: 3 to 72 months⌛

Services & Industries

  • Finance Types: Business Loan, VAT Loan
  • Industries: Multiple sectors

Pros

  • Fast processing
  • No Personal Guarantee options

Cons

  • Rates vary widely by loan type

Sources: https://portmanfinancegroup.co.uk

6. Capalona

Capalona Capalona functions as an online broker offering a variety of UK business loans, suitable for SMEs seeking flexible funding. It connects borrowers with multiple lenders for competitive terms. The service supports a wide range of loan sizes and industries, providing quick eligibility checks and diverse options for different business needs.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £10,000,000
  • Min APR: 6%
  • Max APR: 20%
  • Loan Duration: 1 to 120 months⌛

Services & Industries

  • Finance Types: VAT Loan, Business Expansion Loan
  • Industries: Various industries nationwide

Pros

  • Wide range of lenders
  • Quick eligibility check

Cons

  • Broker fees apply

Sources: https://www.capalona.co.uk

7. Ignition Credit

Ignition Credit Ignition Credit provides flexible asset and vehicle finance options tailored for SMEs. Its offerings include secured and unsecured products suitable for franchise businesses and asset purchase needs. The provider supports quick approvals and customised repayment plans, making it suitable for operational and growth funding with varied collateral options.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £250,000
  • Min APR: 7.5%
  • Max APR: 17.5%
  • Loan Duration: 12 to 60 months⌛

Services & Industries

  • Finance Types: Asset Finance, Vehicle Finance
  • Industries: Automotive, Manufacturing

Pros

  • Fast approval
  • Competitive rates

Cons

  • Limited loan products

Sources: https://www.ignitioncredit.co.uk

8. Acorn Business Finance

Acorn Business Finance Acorn Business Finance is a broker specialising in emerging and innovative business funding options, including asset-backed and unsecured loans. It provides tailored solutions for SMEs with a range of collateral types and flexible repayment structures. Its focus is on assisting businesses in securing funding suited to their growth stage and industry needs.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £500,000
  • Min APR: 6%
  • Max APR: 30%
  • Loan Duration: 3 to 60 months⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Tax Loan
  • Industries: Emerging businesses

Pros

  • Tailored solutions
  • FCA accredited broker

Cons

  • Higher fees for unsecured loans

Sources: https://acornbusinessfinance.co.uk

9. Iwoca

Iwoca Iwoca provides fast, flexible credit solutions including short-term business loans and credit lines. It caters to SMEs seeking quick access to working capital with options for secured and unsecured lending. The services are suitable for franchisees and other businesses looking for operational funding or growth capital with flexible repayment terms.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 20%
  • Max APR: 49%
  • Loan Duration: 1 to 24 months⌛

Services & Industries

  • Finance Types: Business Loan, Credit Line
  • Industries: Various sectors

Pros

  • No fees on short-term loans
  • Flexible repayments

Cons

  • High APR

Sources: https://www.iwoca.co.uk

10. Nationwide Corporate Finance

Nationwide Corporate Finance Nationwide Corporate Finance offers a range of secured and unsecured business loans, including asset-backed options. It caters to SMEs requiring flexible terms, larger loan amounts, and quick processing. The service suits businesses that prefer direct lending from a national provider with sector-specific or general financing needs.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £10,000,000
  • Min APR: 5.8%
  • Max APR: 15%
  • Loan Duration: 12 to 60 months⌛

Services & Industries

  • Finance Types: Term Loan, Equipment Finance
  • Industries: Multiple, including corporate sectors

Pros

  • No broker fees
  • Large loan amounts available

Cons

  • Personal guarantees required

Sources: https://www.nationwidefinance.co.uk

How to choose

Choosing the right lender depends on your specific finance needs. Bank providers often offer straightforward, quick decisions for well-qualified applicants. Brokers or online platforms like Funding Agent can give access to a wider range of options, including specialised VAT and tax loans for SMEs. Consider your industry, loan size, repayment flexibility, and speed of approval when selecting a provider. Evaluate the costs, eligibility criteria, and repayment terms carefully to find the best fit for your franchise business.

Conclusion

Matching your funding provider to your needs involves understanding whether to approach a bank, broker, or specialist lender. Banks typically offer quick, secured loans for larger amounts. Brokers like Funding Agent provide broader options and access to lenders. Specialist lenders focus on niche markets such as VAT and tax loans. Always confirm current costs and terms with the lender; pricing may change. Funding Agent is a strong choice for SMEs that want quick comparisons across multiple options. Other providers suit larger amounts, asset-backed needs or sector specific requirements. Carefully review your options before applying to ensure the best fit for your business objectives.

Frequently Asked Questions

What is a VAT loan and how can it help UK SMEs?

A VAT loan is a short-term finance option that helps SMEs cover their VAT payments. It improves cash flow by allowing businesses to pay VAT in instalments or get a loan to meet deadlines.

How do I qualify for a VAT or tax loan as an SME in the UK?

Typically, you need to be VAT registered, have a good credit history, and demonstrate steady business income. Each lender has specific requirements, so it’s best to check individual criteria.

Can VAT and tax loans improve my business cash flow?

Yes, VAT and tax loans can significantly improve cash flow by easing the immediate burden of tax payments. This allows businesses to reinvest capital into growth or manage other expenses.

Who are the top VAT and tax loan lenders for UK SMEs?

Some of the leading VAT and tax loan lenders in the UK include MarketFinance, iwoca, Liberis, Capify, and Funding Circle. These lenders focus on fast approvals and flexible repayment plans.

What are the typical interest rates and fees for VAT loans?

Interest rates vary but generally range from 5% to 20% APR depending on the lender, loan amount, and term. Additional fees may include arrangement or early repayment charges.

How long does it take to get approval for a VAT or tax loan?

Approval times vary by lender but many UK VAT loan providers offer fast decisions within 24 to 72 hours, with funds sometimes released on the same day.

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