Short-term Finance

VAT Loans

VAT loans are a type of business funding used to pay VAT bills and reduce the impact of costly late payment fines. Using finance can spread the cost of a VAT bill and improve company cash flow, allowing you to further grow your business.
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Key Features

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Improve cash flow
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Fast payment made directly to HMRC
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Quick and simple to arrange
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Alternative funding lines
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SPV's or individual
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Approval within 24 hours
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Competitive rates
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100% funding
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Loans from £50,000 to £5,000,000

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How does a VAT Loan work?
While many commercial properties are exempt from VAT, this only means that the tax can be recouped - it will still need to be paid in the first place. This is a significant burden for developers, because while they may eventually get their money back sinking an additional 20% into a purchase for 2-3 months severely restricts their ability to take on new projects in the meantime. Because VAT can be payable when you sell a property as well as buy it, both parties in the transaction are liable for sudden expenses, and while the vendor may not need to pay VAT on the building itself, they will likely become liable for other VAT-related costs.
When is a VAT Loan needed?
VAT is not always payable on a property transaction, which means it can sometimes trip up unwary buyers; the sudden discovery that there’s a 20% fee payable is a nasty shock for investors who thought they had the deal all sewn up. In short, VAT is usually payable on new commercial property sold as a freehold, and most other buildings are exempt.

Why Merryoaks?

The Merryoaks Property Finance team have a long and successful background in finding and providing creative financial solutions for property investors and developers throughout the UK. Our aim is to help you fund your next investment or development project and be part of your on-going growth to bigger and better deals.
Highly Experienced, Relationship Driven, Solution Focused.

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