Cash flow guide
Funding to pay HMRC arrears
HMRC arrears can put pressure on a business quickly. Lenders usually need a clear explanation of what happened and how the business will stay current afterwards.
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Why HMRC arrears affect lender appetite
Tax arrears can suggest cash flow stress, so lenders may look closely at recent bank conduct, trading performance, payment plans and whether the arrears are a one-off issue or part of a wider pattern.
A clear repayment plan and evidence that trading has stabilised can make the enquiry easier to assess.
Information to gather
Useful details include the amount owed, tax type, dates, any Time To Pay agreement, payment history, recent bank statements, management accounts, current turnover and what caused the arrears.
If the funding will clear arrears, explain how future tax payments will be met without repeating the same pressure.
Potential routes
Options may include a business loan, invoice finance, asset finance or secured funding depending on the business position and available evidence. Not every lender will consider HMRC arrears, so criteria matter.
How Jolt makes the next step easier
You do not need to know the perfect lender at the first step. Jolt looks at the funding purpose, timing, documents and likely route, then helps shape the enquiry around lender appetite.
Start with the amount, what the money is for and how quickly it is needed. If the route is not obvious, the enquiry can still be reviewed without turning this page into another form.
Funding to pay HMRC arrears FAQs
Can funding clear HMRC arrears?
Some lenders may consider it, but the arrears, payment history and affordability need to be clear.
Will HMRC arrears stop all business loans?
No, but they can reduce lender options and may affect pricing, term or security requirements.
Is Time To Pay better than unmanaged arrears?
An agreed arrangement that is being maintained can be easier to explain than unmanaged arrears, but lenders still review the wider position.
What is the main risk?
The main risk is borrowing to clear arrears without fixing the underlying cash flow issue, which can create more pressure later.