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Spread the Impact of your Partnership Tax Bill with Tailored Tax Funding

Partnership tax generally costs more as a whole than corporation tax and working out each member’s liability can be difficult at the best of times. This can affect businesses such as architects, lawyers and accountants who share a common cause but often operate as self-employed entities within the partnership.

Making sure everyone in the partnership is well equipped for dealing with the tax payments due in January can ensure your business runs more smoothly and everyone stays on track and can meet their commitments. Swapping a one of payment to the HMRC for tax funding, where you basically get a loan for the amount you are liable for and pay it over monthly instalments can relieve a huge amount of pressure on practices.

At PFC we offer tailored, private tax funding that helps businesses working through partnerships to spread their liability over a short term period of 6 to 12 months. Most businesses falter when faced with unexpected financial settlements such as tax bills and having a way to ameliorate that impact can make a huge difference to the day to day operation of all partners.

The Benefits of Tax Funding for Partnerships

  • It spreads the cost of tax payments across a longer period, making sure that partners don’t have to find valuable funds as the deadline for HMRC returns approaches.
  • It allows partners to know where their tax liability lies and how much they need to pay each month rather than trying to get the payment together at the last minute.
  • Some partners are better at dealing with cash flows and tax liabilities than others and introducing tax funding can make sure additional pressure isn’t put on their capabilities because of the failures of another member of the team.
  • It gives breathing space for the partnership that allows it to grow and develop especially at a time of year when business is naturally slower.
  • The loan can be made by an individual who is self-assessing, to make sure liabilities are covered, or by the partnership as a whole to ameliorate any unforeseen charges.

How it Works for Partnerships

At PFC we’ve got a fair deal of experience in dealing with all aspects of tax funding for corporations, self-assessors and partnerships. With access to private funding that can be tailored to individual needs, we can work with you to find the right solution that suits your business. Payments can be made either directly to the HMRC or to the partner or partnership concerned and repayments can be spread over 6 to 12 months.

Tax funding is available for small and large partnerships whether the bill is just a few thousand pounds or much larger. If you want a solution that makes it easier to pay your all-important tax bill, then contact our highly skilled and professional team today.

Sweating your assets

Leveraging the potential of everyday business assets is just one way that cash strapped practices can generate the extra finances needed to grow or forge new paths within their industry. Find the right solution, and the right management company to handle it all for you, and a number of avenues can quickly open up that enable your business to function more flexibly.

Getting the Most out of Your Business Assets

According to the BBA, after a fairly stagnant period, it’s claimed that banks are beginning to loan more out to small and medium size businesses with over 30,000 loans agreed in the second quarter of 2015. For many businesses however, this may not be enough or there may be too many hurdles to overcome to access the finance. To such an extent, last year actual bank lending actually fell by some £400m.

As such, there are still many practices that go to their bank and get turned down for valuable financing, even when it is a relatively small amount. When that happens it can be difficult finding alternative sources of funding and a business can start to stagnate without the necessary cash flow. One avenue that’s proving increasingly popular is using your practice’s assets to secure a loan. You may be surprised how much you are actually worth.

Assets can come in all shapes and sizes, not just stock and infrastructure. For instance, your brand and logo is an asset and has a financial value as well as product and service developments and even written content. Your productivity and future potential is an asset too, though less tangible.

What your practice is worth today if it was sold is important. Whilst many very young practices may well have a negativity equity, others could have several thousands in previously unconsidered assets that can be packaged together and used to help get a loan.

How Asset Financing Can Benefit Your Business

Many practices require extra funding to meet short term and long term financial requirements, including partner buyouts and acquisitions as well as refurbishments and cash flow concerns. When the bank won’t agree to a loan it can get extremely difficult. The first thing practices need to do is identify the assets they have and then find how to leverage these.

At the Practice Finance Company our experienced advisors can help businesses find the right route to finance and secure a loan that not only matches and maximises your assets but also enables you to handle repayments. We’ve arranged over £3 million in funding for practices across the UK this year alone, helped by our access to private funding avenues. With the right financial team to support your business you can make your assets work harder and find you the right access to finance.

When The Computer Says No…

Whilst we may officially be out of the recession and business is definitely on the up, many practice partners and SME owners are still finding it difficult to obtain the financing from time honoured, mainstream sources that they need for development or day to day business operations.

Let’s face it, banks are still reluctant to lend to small businesses – the level of lending fell last year by almost £400 million and though things have picked up in 2015 there are still plenty of businesses who cannot access extra funds when they most need it. According to recent feedback, access to credit continues to be one of the major hurdles that small businesses face, on a par with the rising costs of utility bills and problems associated with getting payment from clients.

In short, there are plenty of instances when companies need a loan and the banking computer just says no.

So what does a small business or private practices do when it needs to grow or access finance and can’t get the bank to agree a loan? The good news is that there are alternative solutions available and many SMEs are starting to explore these avenues, building long term relationships with private financing companies that are more than simple monetary arrangements.

PFC works in a totally different way to your local bank. It’s not just about filling in a form and meeting set criteria that are largely skewed against lending in the first place. We are here to build a long term business relationship and not just tick off boxes for a loan formula in the vain hope that you might be eligible.

Our aim is to find the loan package that suits your business and give you access to fast, reliable finance that helps you to stay competitive. We do this by having on board more than 30 funders who are willing to lend to a variety of SMEs, from new start enterprises, to long-established companies.

Whether investing in new equipment, or simply a desire to introduce capital into the business for intangible purposes, our standard working capital lines of credit are ideal for general business investment needs.

Our combined 30 years’ experience is honed across multiple industry sectors, encompassing nearly every type of UK SME business.

With dedicated account handlers who get to know what your business really needs and fast response times, the PFC team has over 30 years experience of providing finance that simply helps businesses like yours grow. It’s not about targets and algorithms, it’s about building relationships that matter which is why we are able to provide the right access to finance for over 90% of our clients.