It’s all about cash flow. The VAT liable on a property purchase is a major consideration for purchasers. Mortgage banks do not normally offer loans over 60% LTV which means that 40% in equity is required, as well as standard acquisition costs ranging from between 5 – 7%. On top of these outlays, the purchaser has to provide a further 20% for the VAT, payable on completion. This additional, sometimes overlooked, cost can pose a significant problem – which jeopardises the deal. Although the VAT is later recovered from HMRC, reclaiming the money can take up to three or four months, devastating cash flow for the buyer. BloomSmith’s VAT loan facility is ready to help. By providing unsecured finance to cover 100% of the VAT on your purchase, they facilitate your deal.