Premium Credit has seen strong growth in the volume of funding and number of customers it supports through its Tax and VAT funding proposition.
The proposition allows companies and business owners to spread the cost of their VAT, corporation tax and self-assessment tax payments.
In 2023, the total amount of money the firm lent to help fund clients’ VAT bills was nearly double the total amount lent in 2021 – 98% higher.
Over the same period, funding for non-VAT tax bills was 83% higher, showing growth across the business and growing awareness of the convenience of being able to spread the cost of tax bills among small to medium enterprises (SMEs).
The amount of funding provided through Premium Credit’s Tax and VAT funding proposition for VAT tax bills in Q1 2024 was 16% higher than for the same period last year.
For the funding of non-VAT tax bills, it was 25% more.
The number of clients using Premium Credit’s Tax and VAT funding proposition increased by 58% between 2022 and 2023 and by 51% between 2021 and 2022.
Last year, the average size of loan to help pay VAT tax bills was £101,352, and for non-VAT tax bills it was £73,625.
Jennie Hill, chief commercial officer at Premium Credit (Specialist Lending), said: “The Tax and VAT marketplace is currently worth around £190 billion annually, and we estimate that between £3billion and £5 billion is financed each year.
“We are one of the leading funders of Tax and VAT finance in the UK, offering flexible VAT, corporation tax and self-assessment solutions allowing businesses and business owners to spread the cost of their liabilities for up to a year.”
