Delivering innovative VAT funding for commercial properties
VAT bridging loans for UK real estate acquisitions
Delivering specialist finance tailored to our clients’ specific needs is at the heart of Enduro Finance’s mission, and our new VAT funding facility is a prime example of our innovative solutions in action.
Many traditional lenders are unwilling to provide VAT funding due to the high loan-to-value ratios it can create and the fact that a VAT obligation doesn’t offer an asset that it can be secured against.
Fortunately, our VAT bridging loans can enable you to overcome this obstacle without causing a material impact on your senior mortgage.
By lending based on a clearly defined structure, this innovative financing model ensures that you can borrow without a second legal charge against your property.
The benefits of a VAT bridging loan
Our cost-effective VAT funding solutions enable you to mitigate the impact of a VAT payment and avoid HMRC fines, with loans available from just £50,000.
We can also get your VAT funded within 48 hours of contract completion, enabling you to avoid cash flow challenges that can cause unnecessary stress on your business operations and create frustrating opportunity costs.
Upon completion of the loan term, HMRC directly repays the loan on your behalf, reducing your administrative workload.
Take advantage of an effective option for short-term cash flow management that boosts your LTV without a second legal charge against the property.
How it works
Our VAT bridging loans are for the purchase of a vacant commercial property via a newly VAT-registered SPV outside of a group.
If these precedents are met, then we offer a 90-day VAT bridging loan with a 1.25% monthly interest rate as standard.
You simply need to provide us with the following details, and we can draft you a Briefing Letter setting out the terms of your deal:
property address
purchase price
anticipated completion date
buyer’s and/or solicitor’s information
We can then deliver your VAT funding in four easy steps:
Issuing of your Briefing Letter
Confirmation of details alongside Anti Money Laundering and Know Your Customer checks
Contract formalisation based on details in the Briefing Letter
Provision of your VAT bridging loan to complete your property purchase
After the property transaction is completed, our team of tax experts will then work directly with HMRC to process the VAT reclaim. Typically, this occurs within 90 days and concludes the repayment of your loan.
Getting your VAT funded is a prudent way of managing your cash flow during the property transaction process and enables you to focus your capital on where you need it most.
If you would like to learn more about our VAT bridging loans, then please read our brochure for more information
