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An HMRC Time to Pay arrangement is an agreement that allows a business to repay outstanding tax liabilities through instalments rather than paying the full amount immediately. If your company cannot afford to settle a VAT, Corporation Tax or PAYE liability when it falls due, HM Revenue & Customs (HMRC) may agree to spread the payment over a period that reflects your financial circumstances. However, Time to Pay isn't an automatic entitlement. HMRC will normally want to unders

Owing money to HM Revenue & Customs (HMRC) doesn't automatically damage your business credit score. Unlike a missed payment on a business loan, an overdue VAT or Corporation Tax liability isn't necessarily reported directly to commercial credit reference agencies. However, HMRC arrears can still affect your company's creditworthiness, particularly if they lead to court proceedings, insolvency action or other evidence of financial difficulty. Business lenders may also identify

Paying tax is a normal part of running a business, but substantial VAT, Corporation Tax or PAYE liabilities can sometimes put pressure on cash flow. Even profitable businesses can experience difficulty meeting tax payments when cash is tied up in stock, equipment, outstanding customer invoices or other working-capital requirements. If your company has a tax bill approaching, there may be several ways to manage the payment, including business loans, overdrafts, revolving credi

Yes, a business can potentially borrow money to pay its Corporation Tax bill, although not all business lenders will accept tax payments as a permitted borrowing purpose. Corporation Tax is generally payable on a company's taxable profits. However, the timing of the payment can create cash-flow pressure, particularly where profits have been reinvested in the business or working capital is tied up in stock, equipment or outstanding customer invoices. A company can therefore be

Yes, businesses can potentially use a business loan to pay a VAT bill, although not every lender will accept tax payments as a permitted borrowing purpose. VAT is a normal part of running a VAT-registered business, but paying a substantial quarterly VAT liability can sometimes create pressure on working capital. A business may be profitable and generating strong turnover while still experiencing a temporary cash-flow shortfall when its VAT payment becomes due. In these circum

Yes, it is possible to obtain a business loan while your company has an HMRC payment plan in place. An HMRC Time to Pay arrangement doesn't automatically prevent a business from obtaining additional finance. Some lenders are prepared to consider applications where the arrangement is being maintained and the underlying business remains financially sound. Other lenders have stricter credit policies and may decline applications involving outstanding tax liabilities. The key ques

Yes, it is possible to obtain a business loan when your company has outstanding tax liabilities with HM Revenue & Customs (HMRC). However, HMRC arrears are an important consideration for business lenders because they can indicate that a company has experienced financial pressure or has been unable to meet its obligations when they fall due. Some lenders will automatically decline businesses with overdue tax liabilities. Others may consider the application depending on the amo

Learn how business lenders assess adverse credit, including CCJs, defaults and missed payments, and why recency, severity and current performance matter.

Does a satisfied CCJ affect a business loan application? Learn how lenders assess paid CCJs, including their age, amount and subsequent financial conduct.

Business loan declined? Learn what to check before applying again, including cash flow, existing debt, credit history, bank conduct and loan affordability.

Find out why business loan applications are declined, including cash flow, existing debt, bad credit, bank conduct, trading history and affordability.

There isn't a single credit score that you need to get a business loan. Unlike some forms of consumer lending, business lenders don't all use the same credit scoring system or apply the same minimum score. A score that is acceptable to one lender may fall outside another lender's criteria. Some lenders rely heavily on automated credit scores. Others use manual underwriting and consider the information behind the score alongside the company's turnover, cash flow, bank conduct,

Missing a repayment on an existing business loan doesn't necessarily mean your company cannot obtain further finance. However, recent missed loan payments are likely to be taken seriously by a new lender because they can indicate that the business is already struggling to meet its existing financial commitments. The circumstances matter considerably. A single missed payment caused by a temporary timing issue can present a very different risk from a business that has repeatedl

Yes, potentially. A previous default on a loan or other credit agreement doesn't necessarily prevent a business from borrowing again. However, lenders are likely to take a previous default seriously because it provides direct evidence that a borrower has previously failed to meet its agreed credit obligations. The important questions are usually when the default occurred, what caused it, how much was involved, whether the debt was ultimately repaid and how the business has co

Yes, potentially. A County Court Judgment (CCJ) against a director does not automatically mean that their limited company cannot obtain a business loan. A limited company is legally separate from its directors, so a personal CCJ against a director is different from a judgment registered against the company itself. However, business lenders may also assess the people behind an SME, particularly directors, significant shareholders and anyone providing a personal guarantee. A di

Can you get a business loan with a CCJ? Learn how lenders assess the age, amount and status of a CCJ alongside your business's current financial position.

Having bad credit doesn't necessarily mean your business cannot get a loan. Different business lenders have different approaches to credit risk. Some require a relatively clean credit history, while others are prepared to consider applications involving CCJs, previous defaults, missed payments or other adverse credit. For many SME lenders, the important question isn't simply whether adverse credit exists. It is what happened, when it happened, how serious it was and what the

Find out whether applying for a business loan affects your credit score, including the difference between soft and hard searches and searches on directors.

Compare business loans and overdrafts, including costs, flexibility, repayments and when each type of business finance may be more appropriate.

Can a new business get a loan? Learn how trading history, turnover, cash flow, accounts and management experience affect finance for newer businesses.