Every January, professional firms and their partners face the same pressure: a large, predictable tax bill landing at the least convenient point in the cash cycle. The instinct is to lean on the overdraft. It is rarely the best tool for the job.
Why a dedicated facility beats the overdraft
A dedicated tax facility does one thing well. It spreads a known cost over a set period at a fixed rate, leaving the firm's core banking lines free for the day to day running of the practice. That separation keeps working capital available for the things that actually grow the business.
It is usually cheaper, too. Overdrafts are priced for a flexibility you may not need, and they can be reduced or withdrawn at the very moment you are relying on them. A term facility, arranged in advance, removes that uncertainty.
Plan it before the bill arrives
The practical move is to arrange it in the autumn, not the week before payment is due. A short conversation is enough for us to indicate terms across the whole of the market, so the January payment becomes a line in the budget rather than a scramble.