Vincent Bull

Specialist funders seen as enablers to the whole transaction



With the first few deals now going live, it is clear that there is space in the market for a niche product such as VATBRIDGE DF+.

Developers are always looking for ways to maximise cash flow and what better way than to leverage against monthly VAT reclaims? Some 80% of the monthly reclaim can be accessed. In addition, administration is reduced as the whole reclaim process is taken care of, which also has the added benefit of speeding up VAT reclaims.

As the commercial property market continues to develop and traditional forms of finance might not always meet the funding requirements of developers, new forms of finance can step in to fill the gap and enable transactions to take place.

In this regard, specialist funders can be seen as enablers to the whole transaction and this leads to strong relationships being formed with bridging and development funders as there is no conflict or the possibility of a specialist funder ‘poaching’ the deal. In the future, it will be usual for funders of all sizes and types to work together as the ‘norm’ rather than the exception.

This can only be to the benefit of the client and help reduce completion delays and, also, possibly costs. With uncertainty surrounding the effects of the UK’s exit from the EU next year, it will be even more important for funders of all types and sizes to work closely together with their clients to overcome any issues and, just as importantly, reap the rewards from the opportunities that may present themselves.


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