Stand Number: 252
The added 20% VAT on top of your purchase price can be an added pressure to your commercial property purchase and can often hamper cash flow, especially on larger purchases. On a £500,000 property purchase, the VAT alone would amount to an additional £100,000. Commercial bridging loans are a great way to fund the VAT on your property, so that you can avoid dealing with HMRC to reclaim your VAT costs, which can take months. We liaise directly and quickly with HMRC, cutting down your interest costs and saving you time that can be spent doing what your business does best.
Bridging finance is where a company, such as ourselves, offer short-term loans to cover a cost for a short period of time (until the applicant can pay). It bridges the gap, until you’re able to pay the loan back – plus a small fee.
In our case, the loans we offer give 100% of the VAT due on a commercial property purchase. We then take over the recovery of VAT from HMRC, leaving you to get on with business as usual, whilst reducing your interest costs.