Bridging Loans

VAT bridging loans from Veritas Noble give you the ability to gain access to the short term funds that you need to cover the costs of VAT that is due or expected when purchasing commercial property.

What are VAT bridging loans?

VAT bridging loans from Veritas Noble give you the ability to gain access to the short term funds that you need to cover the costs of VAT that is due or expected when purchasing commercial property. For many purchases, a standard financing deal may not be enough to cover all the costs, and many business owners are caught off guard or are unaware of the additional capital requirement of the VAT.

A VAT bridge loan comes in at that point to help you clear the final hurdle to the purchase. VAT rules are complicated, and often this tax is added towards the end of a purchase, so getting quick access to the funding you need to meet those additional costs is essential. Veritas Noble can help organizations in the recycling, manufacturing, waste sectors and beyond get the VAT bridging loans they need.

When do you need a VAT bridging loan?

VAT is chargeable on commercial properties that are for sale and are no less than three years old, with a VAT at a rate of 20% of the total value of the property. If the landlord or owner of the commercial property has made any refurbishment or renovations recently, then VAT may also be paid in order to help cover the VAT of their own property improvements.

There may be other times that VAT is added to a commercial property transaction, and if you’re caught off guard by the sudden addition of that fee, VAT bridging loans can offer some assistance. Your business can reclaim the costs of VAT, but this can take between two and three months, which can greatly affect your organisation or business’s cash flow. Normal lenders and traditional loans do not bridge this gap.

Expedient Loan Arrangements

Veritas Noble works with a wide range of lenders, so the time it takes to secure a VAT bridging loan can differ. However, it’s not unusual for a bridging loan to be arranged in as little as 5 days time. Since VAT costs can often arise quickly towards the end of a property transaction, being able to respond to the sudden need for more funding is an advantage that many will appreciate. As such, the closing of the commercial property transaction may not have to be delayed at all.

Avoid Tying Up Other Funds

When buying a commercial property, your organisation may have working capital that’s free, but that is likely to be intended for the many costs that can come with outfitting and moving into a new property. A VAT bridging loan will make sure that you don’t have to tie up working capital that can better be used on other projects.

Flexible loan options.

Secured or unsecured loans at your disposal

At Veritas Noble, we offer short-term bridging loans to help you clear the final hurdle of purchasing a commercial property. We can offer flexible loans suited to your needs thanks to our network of various lenders.

This flexibility means that we can also offer unsecured loans. These are VAT bridging loans that do not ask for any assets in security of the loan’s repayment. Unsecured loans often require a higher credit score, and come with higher interest rates and a shorter repayment rate. However, the specific details of your own loan will depend on which lenders in our network will work with you and which deal you choose.

Should you arrange a VAT bridging loan?

If you are in the process of buying a commercial property and you find VAT suddenly being added on top of the costs, then a VAT bridging loan from Veritas Noble can be undoubtedly helpful. However, it’s not only for the case of being caught off guard by VAT.

 

If the property is under three years old or the previous owner or landlord has made renovations or refurbishments, then you should anticipate the addition of VAT at some point. Arranging a VAT bridging loan earlier in the transaction can make sure that you’re ready for the additional costs coming down the line, as well.

 

Get in touch with Veritas Noble if you are in need of a VAT bridging loan. We will be glad to hear out your situation, to help connect you with our network of lenders, and to help you find the short-term loan you need, suited to fit your purposes.




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