VAT & Tax Loans for Broadcast
& Media Businesses
Meet eligible tax liabilities without necessarily allowing one large payment to consume the cash needed for ongoing projects and operations.
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HMRC Works to Its Timetable.
Your Projects Work to Yours.
Cash flow within broadcast and media rarely follows the tax calendar perfectly.
A significant client invoice may be outstanding at the same time as VAT becomes payable.
Meanwhile, crew, suppliers, facilities and another project may all need funding.
A VAT loan can provide short-term funding for an eligible VAT liability, allowing the cash-flow impact to be spread across agreed repayments.
MacManus currently positions its standard VAT facilities over a three-month term, subject to lender approval and eligibility.
Why VAT Can Create Pressure
A VAT payment becomes particularly challenging when several cash demands coincide.
For example:
- A broadcaster invoice is still outstanding
- Freelancers require payment
- Equipment hire invoices are due
- A new production is being mobilised
- Payroll is approaching
- Quarterly VAT becomes payable
All of these requirements compete for the same working capital.
VAT funding provides an alternative to funding the entire liability directly from available cash.
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How VAT Loans Work
The VAT liability is established and the lender assesses the business and proposed facility.
Subject to approval, funding is then arranged around the eligible VAT liability.
MacManus’ current core VAT proposition is based around a three-month repayment term.
Eligibility and precise payment mechanics vary by lender.
Benefits of VAT Funding for
Broadcast & Media Businesses
Preserve Working Capital
Keep more cash available for crew, suppliers, overheads and new projects.
Spread the Impact
Replace a substantial one-off cash requirement with agreed repayments.
Improve Forecasting
Incorporate known repayments into cash-flow forecasts.
Protect Other Facilities
Avoid automatically drawing down an overdraft or other working-capital facility simply to pay the VAT liability.
Meet the Tax Obligation
Arrange funding for the liability rather than depending on a particular customer payment arriving on time.
VAT Funding After a Major Production
Your team has delivered a large event.
The customer has been invoiced but payment is not yet due.
Crew and technical suppliers require payment.
A new production begins shortly.
Then VAT becomes payable.
Using cash reserves for the entire tax liability could reduce the liquidity available to deliver the next job.
VAT funding may allow an eligible business to meet the liability while spreading its impact across the following months.
Corporation Tax Funding
Finance may also be available for eligible corporation tax liabilities.
A corporation tax loan can help spread the impact of a significant tax payment rather than requiring the business to fund the entire amount from available cash at once.
This can be particularly relevant where the payment date coincides with investment, production or other working-capital demands.
Tax Funding Still Needs to Be Affordable
A VAT or tax loan creates a new repayment commitment. It should therefore be assessed against the wider cash position of the business.
Lenders may review:
Trading History
Accounts
Bank
Statements
VAT Returns
Management Information
Existing
Borrowing
Director Profiles
Overall
Affordability
MacManus can help identify lenders whose criteria are appropriate for the circumstances.
Keep Working Capital Available
If a VAT or eligible tax liability is approaching while customer receipts or project expenditure are placing pressure on liquidity, speak to MacManus about the funding options that may be available.
VAT Loan FAQs for Broadcast & Media Businesses
Potentially, subject to lender approval and the liability being eligible.
The current standard proposition on the MacManus website is a three-month facility.
The process depends on the individual finance provider.
Potentially. They address different cash-flow requirements, although the overall borrowing position and affordability of the business would need to be assessed.
Potentially. The facility is arranged against an eligible tax liability rather than the timing of a particular customer payment.
Potentially, subject to the relevant lender’s criteria and product availability.
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