Providing unsecured finance to cover 100% of the VAT on your commercial property purchases.

About BloomSmith

It’s all about cash flow

The VAT liable on a property purchase is a major consideration for purchasers. Mortgage banks do not normally offer loans over 60% LTV which means that 40% in equity is required, as well as standard acquisition costs ranging from between 5 – 7%.

On top of these outlays, the purchaser has to provide a further 20% for the VAT, payable on completion. This additional, sometimes overlooked, cost can pose a significant problem – which jeopardises the deal.

Although the VAT is later recovered from HMRC, reclaiming the money can take up to three or four months, devastating cash flow for the buyer.

BloomSmith is ready to help.
By providing unsecured finance to cover 100% of the VAT on your purchase, we facilitate your deal.

To find out more, call 020 3488 3411 or email [email protected].

meet our team

Accreditations & Affiliations

Bloomsmith is proud to be a patron on the National Association of Commercial Finance Brokers – authorised and regulated by the Financial Conduct Authority.

“… the most reliable VAT lender in the market”

Ludo Mackenzie – Head of Commercial Property, Octopus Property

Our company trades property. The money locked-up with HMRC could have been the key to our next deal. Having recently completed on a property worth £1,500,000, the VAT bill of £300,000 meant we lost out on an auction bid.

Ready to hand cash flow ensures the next deal and the next profit. BloomSmith’s funding of our VAT leaves us free to get on and do what we do best: trade trade property.

BloomSmith client

We had been due to fit out our new vacant building in South West London as soon as we completed but the VAT cash flow meant we were forced to delay this until the VAT returned several months later.

This delayed occupation meant we had to continue paying rent, rates and service charges on the existing premises along with the costs and mortgage payments on the newly acquired building, that was left standing empty.

BloomSmith client

FAQs

Is there a minimum or maximum amount that BloomSmith will fund?

The minimum loan is £50,000, equalling the VAT on a £250,000 purchase. There is no maximum amount; however, VAT facilities are subject to discretionary approval and are subject to terms and conditions.

Can I submit multiple applications?

Yes. There is neither a limit to the number of applications nor to the loan amount that a customer can apply for (although each will be represented in an individual SPV).

What paperwork is necessary?

When an application is made to BloomSmith, you will be asked to complete our standard application form documentation and to provide requisite customer information as well as full details of the property to be purchased.

What sorts of references are required?

BloomSmith carries out an ID check and KYC (Know Your Customer) checks, and any personal and professional references will assist.

Who can you provide this VAT facility for?

Individuals, companies and brokers approach us. BloomSmith then requires the property to be purchased and held in a SPV (Special Purpose Vehicle), which can be established for the client. The director(s) of the SPV will have been approved by BloomSmith and will stand behind all obligations.

Do you offer a Fast Track service?

Yes. When time is of the essence, we can help. BloomSmith offers a Fast Track facility with rapid turnaround tailored to the needs of the transaction.

Case Studies

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News

VAT Loan Secured for Owner-Occupier from BloomSmith
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VAT on Commercial Properties: Understanding the Extra 20%
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Understanding VAT Bridging Loans
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Can I Avoid Paying VAT on Commercial Property?
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3 Reasons Why It Is the Best Time to Purchase a Commercial Property
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Press Releases

BloomSmith funds £500,000 VAT liability
BloomSmith to lend £10m in June
BloomSmith refreshes website

BloomSmith launches new fast track product
A guide to commercial transaction VAT

BloomSmith rescues three clients with VAT funding
Exclusive: Unsecured VAT bridging lender launches

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