Whether you are a property developer or a business owner who might be finding it difficult to pay off HM Revenue and Customs (HMRC) tax bills then a bridging loan may be just what you need to secure the situation. There are other ways of settling these bills but for a fast and effective way is with the bridging loan as failure to pay on time can result in some serious consequences.
You may be able to get extensions on the deadline if the circumstances allow but there are two circumstances where they might expect you to pay immediately upon demand which are:-
- Where the HMRC believes you can pay right now.
- HMRC do not think you can get your tax payments up to date.
If you are struggling with this and running your own business and have outstanding invoices with cash flow problems you might suddenly be faced with an immediate demand that could potentially be disastrous to your situation.
There are however options to deal with the problem and stabilise your finances again. A bridging loan secured against your business or other property could be the best option for you giving you the breathing space to get back in the red and on your feet again.
“We are seeing an increasing use of people using short term finance in the property developing industry to pay of HMRC Bills. This can work well as you may well be about to land a huge multi million pound deal so any disruption in service would be catastrophic. This way you can raise a large amount of short term finance to see you though” – BridgingLoans.co.uk
If you do take a short term bridging loan out you could pay the tax bill then pay off the loan giving you time to improve your finances over the short term. It must be noted that bridging loans are only intended to be a short term solution and you are still basing the loan against the assets you put down so you have to be prepared to be in a good position to pay both back in time or risk losing the asset.
A bridging loan is kind of a temporary fix solution in a short space of time until a more long term fix can be organised but other options are things like commercial remortgaging or perhaps a second charge loan. Where second charge mortgage and remortgaging take weeks or even months depending on your situation but these might not be fast enough to avoid any legal actions against you.
Perhaps you are a property developer facing a demand it might be the case you you just need to settle on your project to (collecting your dividends) and pay the demand so you just need a few weeks to complete before you can pay the bill. Therefor a bridging loan agreement can be quickly and simply put into place in the interim giving you access to the funds you need and complete the project you are working on.
Typically they are low borrowing rates with the option to let the interest accrue to the end of the loan term and the ability to secure finance against the property (or other multiple properties) a bridging loan is both a fast and effective, flexible and affordable as a solution that has the potential to keep the HMRC at bay.