A BloomSmith VAT loan allows you to raise short term finance to cover the VAT due on the purchase of your commercial property. This enables you to complete the deal.

The BloomSmith structure ensures that your equity is safe, as our direct collaboration with HMRC means that they repay your loan for you.

The VAT is chargeable on a commercial property where:

• The property has been elected for VAT
• The owner has registered their interest in that property
• The owner has registered for VAT themselves

This is referred to as an “opted in” commercial property. The vendor is then able to issue a VAT qualifying invoice for the purchase of the property to the purchaser.

You can reclaim the VAT but first, it must be paid upon purchase of the property. Following the property purchase, your VAT reclaim is submitted and processed. It is repaid if HMRC approves the transaction. BloomSmith manages this end-to-end process for you as part of our service.

In general, it takes 45 to 120 days from the date of payment (purchase) to receive your reclaimed amount. This affects your business’s cash flow and potentially even business opportunity. A BloomSmith VAT loan allows you to focus on the next transaction rather than allocating cash to HMRC.

BloomSmith provides a fully managed VAT loan option. This offering means that we will oversee the recovery of the VAT direct from HMRC and deal with all inquiries, leaving you to focus on your new purchase and business development.

BloomSmith is highly experienced in dealing with the VAT recovery process, which can speed up recovery, and reduce interest payment costs by reducing the term of the loan.

Our financial model can enable you to fund your VAT obligations for as little as 1.1% of your property’s purchase price.