VAT Bridging Finance

Are you currently prevented from making a purchase for your business because of VAT costs? Within 24 hours, we can advance the funds you need from your next VAT return.

Use our free calculator to find out what you’re owed, and make a claim within two minutes without needing to deal with HMRC. Alternatively, read on to learn more about VAT bridging finance and three key actions a business can take with it.

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VAT bridging finance solves one of the main problems that businesses face — a lack of working capital. This is a particularly important issue for businesses that encounter a sudden commercial expense that comes with a significant VAT payment.

Businesses need working capital to cover any unexpected expenses and short-term financial obligations. If a business’ cash flow is tight, usually they rely on business loans to maintain growth. Such loans can be used to cover the cost of VAT payments alone, thus helping businesses to “bridge the gap”. However, traditional, long-term financing requires security, and the application process is lengthy (for example, loans may take up to six months before they’re even approved and it may take even longer for releasing funds).

This is where our unique form of VAT bridging comes in: if you need a quick solution to your financial problems, you can access the VAT return that you will be entitled to, but within 24 hours rather than months. At Adsum, we can claim such VAT advances in 24-hours and fund 100% of the VAT upfront, so you retain your capital and save valuable time.


1. Provide short-term working capital

If you cannot find sufficient funds to deal with recurring expenses, your business may be in serious danger. Seasonal changes in demand are a common reality for many businesses, and to this end they may face a temporary crunch in cash flow.

Luckily, you can use VAT bridging finance to cover operational costs during the low revenue periods. Additionally, you can use the finance to meet your payroll obligations and ensure your staff are happy and productive, regardless of what your revenue looks like in those months. In case you need to take on new work, VAT bridging helps cover the cost of employing new staff.


2. Close the funding gap of a commercial property purchase

Did you know when purchasing a commercial property that has been opted to tax with HMRC, usually an additional 20% must be paid as VAT upon completion?

We’ve found that, in many cases, this extra 20% can cause serious problems in the form of a funding gap for buyers. Most traditional lenders will only lend 70% of the purchase price, and not take into account the VAT requirement.

In this scenario, the funding gap is actually 50% which is required to secure the property. Adsum’s bridging finance is specifically designed to solve this funding gap, and enable you to secure the commercial property or land you need quickly and efficiently.

3. Fund the expansion of business premises

Whether you want to renovate your commercial property to add value or expand the space to refine your production process, VAT bridging finance can support this. Often, renovation or expansion projects do not qualify for a conventional loan. However, this does not mean you should pass up an opportunity to modernise your facilities or improve their value due to financial constraints.

By applying for VAT bridging finance, you can start remodelling now. This also allows you to refinance the property at a higher value after renovation and pay back the loan — or sell it for a profit.