However good we are at saving up money to cover the cost of our tax bills, it can sometimes be difficult to come up with the money when the bills come along. If you get a large tax bill, sometimes it can just seem impossible to find the money to pay it.
Borrowing the money is a solution for some people, but in this difficult economic climate, it can be difficult for companies to borrow money. You may also have other debts and not want to add to them. There is another solution that might be available though.
If you have outstanding invoices waiting to be paid, then you get these paid. You may have a selection of customers who never pay you on time or who are struggling financially themselves and have not yet paid you. This money could be what you need to be able to pay your tax bill. Unfortunately, the tax man will not wait and so you will have to get the money. Companies like http://www.hitachicapital.co.uk/ can help.
They will take those invoices off your hands and pay you for them. They will not pay you the full amount owed but a percentage of it and they will then chase the debt for you. This means that they will be able to immediately give you some money that you will be able to use to pay that outstanding tax bill. This could be a massive relief for you and it will mean that you will not have to worry about chasing those debts yourself either. This is something that many business owners dislike doing and perhaps do not have the time to do either.
If you would rather approach your customers yourself, you can still do that and get money through invoice discounting. This means that you will not lose that customer contact, which you might like and they will not have to deal with a factoring company rather than yourself.
There are many ways that you can get money to pay for your tax bill, but this is one that could benefit many companies and mean that you are able to get around the difficulties of cash flow caused by companies not paying their invoices. You may decide that it is a service hat you want to use all of the time to save you the hassle of collecting debts and allowing you to get what is owed to you, sooner.