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].
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.
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.