BloomSmith's New Borrowing Feature that Tackles HMRC Delays

Posted by BloomSmith on 15th December 2023 -

Commercial property VAT funding specialist BloomSmith has launched its new Express Special Purpose Vehicle feature to overcome HMRC VAT registration delays for new companies.

On-going delays to registering newly formed companies can create knock-on repayment delays, risking cashflow issues and cost incursions for investors.

By pre-emptively creating VAT-registered SPVs that borrowers can take ownership of, BloomSmith’s Express Special Purpose Vehicle model expedites loan repayment by avoiding HMRC’s long registration lead times.

Announcing the model, BloomSmith CEO Nigel Smith said: “The introduction of our Express SPVs aligns with our commitment to addressing industry challenges as they appear.

“This practical feature not only enables borrowers to quickly repay their loan but also reflects our dedication to providing efficient solutions that meet the needs of our clients and the prevailing market.

“VAT funding is a fast-paced lending environment and borrowers need fast solutions – this new feature gives flexibility and certainty to borrowers.

“We are seeing the green shoots of recovery for the property sector following an uncertain 12-months. This means we are perfectly placed to lend liquidity to our client borrowers as confidence returns to the market.”

The implementation of the Express Special Purpose Vehicles initiative is the latest in a series of borrowing efficiencies delivered by BloomSmith, including the creation of a new VAT Bridging Loan Eligibility Checker, which enables prospective borrowers to see if they qualify for a loan in under five minutes.

 

About BloomSmith

Founded in 2015, BloomSmith is the leading lender of VAT bridging loans to the UK’s commercial real estate sector.

BloomSmith’s funding model enables it to fund 100% of a commercial property’s VAT within as little as a 48-hour turnaround, provides loans of between £50,000 and £10m.