VAT Bridging

VAT Bridging

Western Money is a principle lender offering VAT bridging finance to assist in the purchase of commercial property transactions. Our professional expertise will help you fund the vat payable on your property without the need for you to deal directly with HMRC, thus improving your cashflow.

The additional 20% of your property purchase can often restrict your cash flow, and with many commercial buyers wanting to retain their own capital, a VAT bridge loan can be a sensible way to retain control of cashflow.

  • Managed Strategy for funding and return of VAT
  • Borrow 100% of VAT due
  • Loans from £200,000 to £10 million
  • Loans to SPV’s and SIPPs
  • 5 working day Completions available
  • Fully managed VAT recovery typically received within 45 days


Frequently Asked Questions

What is the minimum amount that Western Money will fund?

We accept loans from £50,000 to £10m.

How long does it take to get funding agreed?

Each case will be different, however we can usually get you funding within 7-10 working days. sometimes the loan can be approved and drawn down in a shorter timescale.

What initial information do you need from me?

Western Money only requires you to fill out our short application form. Any other information can be forwarded thereafter.

Can I buy the property through my existing company?

In each case we will require that a new SPV (Special Purpose Vehicle) is set up to purchase the property.

Who can apply for VAT Bridging

Western Money offer loans to Ltd companies (SPV’s).

Can I still borrow the VAT if I have borrowed 65%-70% of the purchase price from the senior debt provider?
Yes, no matter the loan to Value on your initial purchase, we can still lend you the VAT funds.
What property type can you lend on?

We can lend on any commercial property that is subject to VAT. Therefore, we do not lend on residential properties.


Case Study

Our client was buying commercial premises in London for investment purposes for £2,000,000. To safeguard his cash reserves he wanted to borrow 100% of the V.A.T due, that amount being £400,000.

We advanced the full net loan to the client and worked with the first charge lender to ensure a smooth transaction. Then, using our fully managed recovery service our V.A.T agent reclaimed the funds from HMRC 48 days after completion.

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