Bridging VAT Finance

What is Bridging VAT Finance?

VAT Bridging Loans for Commercial Property

You’d be surprised at the amount of phone calls we receive from company’s who are purchasing commercial property, however, weren’t aware that VAT is payable on the purchase. Well thankfully we can help, offering a VAT Bridging Loan facility to therefore support you with major purchases which attract VAT.

Why does commercial property attract VAT?

VAT is charged on new (usually less than 3 years old) commercial property. However, it often comes as a surprise to buyers and sellers, therefore, often making it difficult for sellers to sell the property at the right price, whilst the buyer can struggle to obtain finance to include the extra costs, as commercial lenders focus on the Loan to Value (LTV) without VAT. VAT is charged on new commercial properties due to the perceived ‘negative impact’ it has on the UK’s residential housing market. However, thankfully, there is help at hand and VAT bridging loan products are available to help businesses continue with the purchase of the property.

How does a VAT Bridging Loan work?

The loan is used to cover the VAT liability of your purchase, usually a commercial property, however also with other major asset purchases. So, the VAT bridging loan allows you to keep cash in your business, with the loan therefore being repaid once the VAT is reclaimed. However, it can take up to 6 months to reclaim a commercial property VAT payment. A daily interest rate is charged before the loan is repaid.

Why use a VAT Bridging Loan?
  • Facilities available from £10,000 + to £1m
  • 6-month loan term, giving you flexibility while you claim back VAT from HMRC
  • Daily interest charged from 0.075% (unsecured) and 0.05 (secured)
  • Repayments can be made through a monthly or weekly direct debit
How does a VAT Bridging Loan work?

See our VAT Bridging Loan process below.

What information do you need for a VAT Bridging Loan?

The amount of information required will therefore depend on the property, the purchase price and of course your business. Please call a member of the VAT Loans team today and they’ll be happy to talk with you about your requirements.

Bridging VAT Finance Process

Bridging VAT

Cash Flow

Opting for Bridging VAT Finance amongst our other finance options will allow you to keep funds in your business to be used elsewhere. Take control of your finances and free up your cash for you to therefore use in other important areas of your business.

Alternative Funding Lines

No need to use up an existing bank facility. Bridging VAT Finance therefore gives you alternate options to use in order to finance your loans.

Fast Payment

Payment can be made directly to HMRC to ensure your bill is paid on time. This therefore saves you worrying about your finances when it comes to financial deadlines.

Quick and Simple to Arrange

Simple use of our free to use calculator can give you a quote in a matter of seconds. Alternatively, you can give us a call on 01494 956 871.

Fixed Monthly Payments

Easy fixed repayment schedule therefore with industry leading rates.

Approval Within 24 Hours

VAT Loans prides itself on fast and quality customer service, which is why we therefore aim to have a decision to you in the first 24 hours of enquiry.