Nigel Smith

Nigel Smith

The Benefits of VAT Loans, and How to Use them Responsibly

Loans, especially those of the payday variety, are often associated with huge, unreasonable interest rates and crafty lenders. All too often, people are put off the idea of taking out a loan because they’ve heard horror stories in the past of unpayable debts.

In truth, though, it doesn’t have to be that difficult. The benefits of VAT loans, for example, are plain to see, especially when one considers the circumstances in which they become most helpful. For example, VAT loans can be the difference between buying the perfect commercial property and one that simply isn’t suited to your requirements.

Bridging the gap

In our previous article, we discussed VAT bridging loans, and how they can be used to meet a payment deadline if an unexpected fee comes your way. In essence, this is arguably one of the most useful advantages of VAT loans; if you find yourself in a difficult position and desperately need to fund the final stages of the process, then they’re undoubtedly of great help. This kind of short-term assistance is the most common benefit of a VAT loan, but there are also some other important points to consider, explained in the rest of this blog post.

Peace of mind

VAT loans don’t have to represent a solution to a last-minute panic, far from it. VAT represents 20% of a commercial property’s cost. That’s 20% of the overall cost, and not 20% of what you’d pay without VAT; essentially what we’re saying is it’s a lot of money. For that reason, businesses and individuals often find that they need a bit of help from the start. Taking out a VAT loan helps you to plan for a smaller payment than you otherwise would, which can ease the financial strain of the process significantly. While it’s not advisable to take out a loan for the entire property payment, having some help raising part of the funds can be the difference between landing your dream commercial property and one that simply “fits the purpose”.

Using VAT loans in the right way

As our title suggests, we’re also here to advise you about the best ways to use a VAT loan. The benefits of VAT loans are, as we have spoken about, variant depending on the circumstances you’re in. Exactly the same is true for the loans’ disadvantages. If used irresponsibly, VAT loans are simply not as useful or effective. For example, if you’re in the fortunate situation of having all of your necessary funds already, then assistance of this kind is much less of a requirement.

In most cases, you wouldn’t be able to misuse a VAT loan to any great extent. Thorough checks are carried out before a VAT loan is issued, to ensure that the funds will, indeed, be used for the right reasons. Again, this point only serves to further illustrate the secure nature of VAT loans; it’s difficult to go too far wrong with them.


If you are considering taking out a VAT loan, then get in touch with the BloomSmith team to discuss the various benefits of VAT loans. You can contact us at our email address,, or call us on 020 3488 3411. Either way, we’d be happy to discuss your options with you, and look forward to hearing from you.

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