BloomSmith secures £20m Shawbrook funding line

VAT lender BloomSmith has obtained a £20m funding line from Shawbrook Bank to extend its commercial reach and support future growth.

BloomSmith provides 100% of the VAT required on top of commercial property purchases to investors and developers.

HMRC then repays the facility from the reclaim, typically within 90 days.

With no legal charge taken as part of the facility, legal complexity is said to be minimised. 

“The positive impact of our facilities is real, both in terms of transactional simplification and the reduced cost of not having to stretch senior and mezz facilities,” said Nigel Smith, joint CEO at BloomSmith.

“With our funding available within 48 hours, the demand for facilities means that our partnership with Shawbrook — especially in terms of peace of mind, given their standing and experience — is very welcome for both ourselves and our customers. 

“We like to think that it is also a reflection of our professionalism.

“Procuring the Shawbrook funding line has endorsed and strengthened our systems and process, and I look forward to working with our clients to deploy funds through 2022 and beyond.”

Jake Francis from Shawbrook’s speciality finance team, added: “Property is a fast moving competitive sector, particularly in the commercial space, and the proposition BloomSmith has created is highly compelling. 

“It has been a pleasure working with the very experienced management team and to extend the specialist support we can provide the alternative lending community to help businesses like BloomSmith scale up and achieve further growth.”

Neil Petty, founder and joint CEO of BloomSmith, commented that the business was delighted to be working with Shawbrook. 

“I would like to take this opportunity to thank Ella Leonard and Luke Morris of Fladgate and Mark Dalton of Buckle Barton, and of course Jake Francis and Shawbrook’s speciality finance team for their work in creating the partnership.” 

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