Adsum launches new VAT property bridge product
Adsum, the principle lender of tax receivable, has announced the launch of its new VAT property bridge product to service the demand from clients for certainty of funding, and 100% of the VAT liability due on the property completion date.
Mike Underwood, Head of Origination, Adsum, said:
“We listened to feedback from the broker sector, and they told us clients want not only to completely cover the VAT on practical completion, but also lower rates more in line with traditional bridging and to be able to book in the deal upfront – meaning that it’s all confirmed and one less thing to worry about.
Our proprietary technology and client onboarding process allows us to offer this with just a few clicks, as well as increasing broker fees to the best in the market.”
Adsum’s new upfront funding is designed to offer the lowest priced VAT funding rates in the market at the fastest speed, and term sheets can be created on the website with just the advance amount required and anticipated completion date.
In addition to streamlining the funding and application process, there is now no requirement for debentures, charges or personal guarantees – all the things that normally slow or delay a deal, while increasing the cost to the client.
Once terms are agreed, and the client has begun the online onboarding process, they will be asked to pay the deposit to cover Adsum’s legal fees, and once the loan is approved and ready to drawdown, the remaining 2.5% facility fee and 60 days interest will be pre-charged upfront.
The client will then receive 100% of the VAT on completion, at an interest rate of just 0.75% per month.