Brickflow renews exclusive VAT bridging partnership with BloomSmith

Property finance platform Brickflow has renewed its partnership with BloomSmith, which remains the exclusive VAT bridging lender on the platform.

Plugging the VAT gap

When a commercial property purchase attracts VAT, the buyer usually has to pay it on completion and then wait for HMRC to refund it. That can leave a large short-term gap in the funding. A VAT bridge covers that cost until the refund arrives.

BloomSmith's product does not need a fixed legal charge. That means borrowers can fund the VAT alongside their main loan without tying up equity in the property. Loans start at £50,000, which is the VAT on a £250,000 purchase. Interest is charged at 1.25% a month, and BloomSmith says it can provide funds in as little as 48 hours. Brokers are paid commission on completion.

Earning exclusivity

Daniel Silver, Head of Strategic Partnerships at Brickflow, said the platform only grants exclusivity to lenders that keep delivering, and BloomSmith's performance made the renewal straightforward. He said VAT is often dealt with at the last minute on completion day. Brokers should be able to solve it without disrupting the rest of the deal, he added, which is the kind of joined-up service Brickflow aims to offer.

Exclusivity on Brickflow is a mark of trust.

Nigel Smith, Chief Executive of BloomSmith, said VAT bridging is the firm's specialism, and that focus lets it offer a fast and cost-effective way through the VAT payment on commercial purchases. He said that after a year working together, Brickflow has become central to how BloomSmith reaches brokers and finds new lending opportunities.