Bizcap loan helps energy supplier avert collapse amid £1.9m tax pressure

An unnamed UK commercial energy supplier has avoided insolvency after securing a £535,000 small business loan from Bizcap to meet urgent tax obligations, following refusals from other lenders.

The business faced a winding-up threat from HMRC after falling into significant corporation tax arrears totalling £1.9 million. With a strict repayment deadline imposed, the company raised £1 million internally and negotiated a short extension to settle the remaining balance. However, ongoing operational costs left it unable to close the gap.

Efforts to secure external funding were unsuccessful, with lenders reportedly deterred by the scale of the outstanding tax liability. The situation was further complicated by administrative barriers linked to the company’s director, who was unable to obtain a Right to Work Sharecode despite residing and operating legally in the UK.

Bizcap ultimately agreed to provide £535,000 through its Small Business Loan product. According to the lender, the decision followed an assessment of the company’s trading performance and ongoing viability, rather than relying solely on conventional lending criteria.

Given the urgency of the situation, the funds were deployed rapidly, with Bizcap arranging direct payment to HMRC to ensure the liability was settled before the deadline. The lender also worked with the business to verify the director’s eligibility to operate in the UK, enabling the transaction to proceed.

The funding allowed the company to clear its tax arrears in full, preventing immediate insolvency proceedings. The business has since maintained operations, with jobs and client contracts preserved.

The case highlights the challenges some SMEs face when attempting to access funding under time-sensitive and high-risk conditions, particularly where tax liabilities and administrative complexities limit traditional lending options.