A short-term business loan can be an ideal way to pay your tax bill.
It’s an all too familiar story for many business people: the tax bill is larger than anticipated while cash flow is tied up in running and growing the business.
This is a situation encountered by even the most prudent of business owners.
“Most retailers need to invest heavily in stock in the run up to Christmas when much of their annual profits will be made”
Indeed, many times the problem can be a consequence of success, according to Karl Manning, head of SME Banking Growth at Bank of Ireland.
“Fast-growing businesses have to invest in stocks and the growth of their business, while cash flow receipts don’t materialise as larger outgoings such as tax and pension contributions need to be funded. The money will eventually come in but just not when it is most needed.”
More control
The options can appear stark: hold back on investing in the business or on pension contributions or both. But there is quite a simple solution, Manning points out, a tax loan from Bank of Ireland.
“A short-term business loan* can be an ideal solution to pay your tax bill,” he explained. “It offers business owners more control over upcoming costs and frees up resources for investment in longer-term plans to grow the business. It allows you to take control of your cash flow and spread the cost of the tax bill into more manageable monthly payments.”
Spreading the tax bill over 11 monthly repayments is increasingly common among business people. And one of its key attractions is that it makes valuable cash reserves available for other uses. The short-term nature of the loan is also important. This ensures that the business is not building up long-term debts for short-term needs.
Cash flow
Among the key benefits of a tax loan are better controls over cash flow; fixed monthly payments offering valuable predictability; flexible repayment terms to fit in with trading patterns; and fast payment transfer.
The application process is also quick and simple. You can apply for a Bank of Ireland tax loan up to €120,000 over the phone or online with no paper application forms required and a speedy response guaranteed – vitally important with the tax deadline approaching fast.
The advantages of a short-term tax loan centre around preserving cash for when it can be used most productively for a business
While the use of short-term business loans to meet tax bills is on the rise, quite a few business owners are still not availing of the option, despite the attractive terms on offer.
“Most retailers, for example, need to invest heavily in stock in the run up to Christmas when much of their annual profits will be made,” says Manning.
For further information about a loan to help manage your tax bill from Bank of Ireland, visit bankofireland.com/taxloans
Published: 11 November, 2020
Level of security required and rate applicable, will be determined by the amount, purpose & term of facility, in conjunction with the nature and value of the security being offered. Lending criteria and terms and conditions apply. Over 18’s only. Maximum credit of €120,000 available for online applications and over the phone. For amounts greater than €120,000, contact your Relationship Manager or local branch.
Bank of Ireland cannot take responsibility for information on third party websites
*Max term 11 months.
** For more information please go to www.revenue.ie
| WARNING: THE COST OF YOUR REPAYMENTS MAY INCREASE |
| WARNING: IF YOU DO NOT MEET THE REPAYMENTS ON YOUR CREDIT FACILITY AGREEMENT, YOUR ACCOUNT WILL GO INTO ARREARS. THIS MAY AFFECT YOUR CREDIT RATING, WHICH MAY LIMIT YOUR ABILITY TO ACCESS CREDIT IN THE FUTURE. |
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