Date: 06/09/2023 | Written By: BloomSmith VAT Funding
According to official statistics there were 6,342 recorded company insolvencies in Q2, reflecting a 9% increase compared to the number of insolvencies in Ql, and a 13% increase compared to the second quarter of 2022. Funding is challenging, loan to value under pressure, and second charges unpopular with senior lenders.
BloomSmith partner with Begbies Traynor Group under their Practice Portfolio scheme to ensure there is an awareness that our VAT funding solutions can provide all of the VAT and/or SDLT required, to assist transactions to a successful conclusion.
This can greatly assist the Practice Portfolio network of accountants and their clients with the speed required to complete a commercial property acquisition or disposal.
In summary, we provide 100% of the VAT required, can do so in 48 hours of legal undertaking, are repaid directly by HMRC and the purchaser is able to pay the fee from the loan advance. We also deal with large asset purchases (£500k plus).
You can see from the example graphic below, with the added liquidity BloomSmith provide, it is possible for the purchaser to acquire a £3m property as opposed to a £2m property, given the same equity input.
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