When you’re looking to assess your options in regards to business loans, you may be faced with a decision as to whether you will be best to choose a secured or an unsecured loan. At BloomSmith, we offer unsecured business loans in order to provide VAT funding for businesses buying commercial property. As such, we can advise on what an unsecured loan entails and how it can benefit you when you are faced with a high and potentially unexpected VAT charge.
We spoke recently about how buying a commercial property differs from buying a domestic property; one of the predominant differences is the VAT. Regrettably, many businesses fail to secure a property purchase due to an unexpected VAT charge. It is at this point that businesses will consider a loan in order to gain VAT funding.
If you are in this position, you will need to decide between a secured or unsecured business loan. An unsecured loan means that you are not putting any of your property forward as collateral should you not be able to repay the VAT loan. This makes the risk to the lender far higher, so it is generally offered on a basis of the good credit score of the lendee.
Benefits of an Unsecured Loan
The predominant benefit of an unsecured loan, which is paramount in the case of VAT funding, is that the process is significantly quicker. When businesses come to BloomSmith for a VAT loan, it is vitally important that the process is completed quickly, as there is often a very short period of time that the business has to gain the money for the VAT cost.
Choosing an unsecured loan as a bridge loan for the VAT means that you will have the funding available in time for the property purchase to be completed. Without this, there is a very strong possibility that the property will be lost.
By choosing an unsecured loan with a reputable business loan company, you are guaranteeing that you will receive the VAT funding that you need in time to complete your commercial property purchase.
At BloomSmith we are dedicated to providing businesses with the VAT sum that they need to purchase a commercial property. Due to our efficient working methods and the Fast Track service that we offer, our unsecured loans can be processed and granted within the short window that you have to pay the VAT on a commercial property. We have helped numerous business owners to secure a property which they otherwise would have lost; call us today on 020 3488 3411 to discover how we can help you.