A VAT on Purchase loan can be just what business owners need for major purchases attracting VAT. The loan enables you to cover the VAT liability, keeping cash in the business for other needs, repaying the loan once the VAT is reclaimed.

Who is it for? It is designed for businesses looking to invest and grow, while also keeping an eye on inevitable cash flow challenges.

The loan facility offers funding from £10,000 upwards and covers VAT paid on commercial properties or other large asset purchases. It is for a maximum six month term in order to provide flexibility while claiming back VAT from HMRC. A classic example would be a business that is presented with an opportunity to buy the ideal commercial property that has become available. The price is £250,000 but with the VAT added on, another £50,000 has to be found. The VAT can be claimed back from the HMRC but this takes on average about four months. This extra money can be a deal breaker with some funders unwilling to advance further monies to cover it. A VAT on Purchase loan can give you the security you need to know this cost is covered while freeing up cash to use elsewhere in the business.

Fast, light touch application process to meet VAT payments on commercial properties and major equipment purchases

• Facilities from £10,000 upwards

• 6 month loan term giving flexibility while claiming back VAT from HMRC

• Daily interest from 0.075% on an unsecured basis and 0.05% on secured

Written by Financial Service Solutions Ltd