Client Overview
The client was a UK property investment and refurbishment company acquiring a mixed-use asset. The transaction generated a substantial VAT liability, creating short-term funding pressure at completion.
The directors approached Articus Finance to structure a dedicated VAT finance facility to avoid tying up working capital.
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The Challenge
The property acquisition created:
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A £420,000 VAT payment due to HMRC
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Tight completion timelines
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Additional capital required for refurbishment works
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A need to preserve liquidity for ongoing projects
While the VAT would ultimately be reclaimable, the timing gap presented a cash flow challenge.
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The Articus Finance Approach
Articus Finance reviewed the transaction timeline, VAT position and expected reclaim schedule. We assessed short-term funding structures and introduced specialist lenders experienced in supporting property transactions.
The objective was clear: bridge the VAT liability efficiently without disrupting the wider capital stack.
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The Solution
Articus Finance secured:
- A £420,000 VAT loan facility
- Competitive short-term rate
- Flexible repayment aligned to VAT reclaim
- Fast approval to meet completion deadlines
Clients considering similar solutions often use our Business Loan Calculator to assess potential funding requirements before structuring a facility.
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The Result
- Completion achieved on schedule
- Working capital preserved
- Refurbishment works commenced immediately
- No disruption to existing projects
By separating the VAT liability from core funding requirements, the client protected cash flow and maintained project momentum.
This case demonstrates how strategic planning within structured corporate finance arrangements can remove friction from otherwise complex transactions.
