Proplend launches VAT loan product
Proplend launched VAT loans for commercial real estate and appointed an industry veteran to help roll out the new product.
Like Peer2Peer Financial News reported in January, the peer-to-peer commercial real estate lending platform used the foreclosure period earlier this year to assess its product offerings and began work on the new lending product, which helps real estate investors to pay the VAT due on purchases.
Proplend has stated that this is a short term loan for a real estate investor where the purchased property is subject to VAT. The borrower pays VAT to HMRC and simultaneously applies for VAT refund.
VAT lending expert Peter Bloom has been appointed a non-executive director of Proplend.
Bloom co-founded BloomSmiths in 2015, one of the UK’s first VAT lending companies.
He has over 30 years of experience in the acquisition and disposal of commercial real estate investments, combined with a deep understanding of VAT loans, Proplend said.
He will assist with the launch and growth of the platform’s new VAT lending product and contribute to the company’s broader ongoing strategy.
“I had wanted to launch a VAT loan product for some time to complement our existing business term and bridge loans and meeting Peter was a very timely event,” said Proplend Founder and Managing Director Brian Bartaby.
“The way we operate and are funded means borrowers will ultimately benefit from a lower overall transaction cost.
“Not only will we be the first platform to offer VAT loans, but we can also save borrowers time and money by offering a combination of senior debt and VAT loan. Peter’s 30 years of commercial real estate experience, combined with his visionary knowledge of VAT lending, is a welcome addition to our small entrepreneurial team.
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“Having created the first specialist VAT real estate loan product, which I launched through Bloomsmith, I was very happy to be invited by Brian to join his team in the next evolution, by integrating the VAT loan into a platform. fintech, ”Bloom said. “Providing VAT bridging loans through Proplend’s technology platform is the next advancement in lending and couldn’t have come at a better time. “
Proplend has been busy with a number of new products this year. In March, it launched AutoLend 2, a new feature that gives lenders the ability to turn their investments on and off.
This includes an automatic investing product called Always On and a manual investing product called Self Select.
Always On is for “hands off” lenders who want to automatically invest funds based on their defined criteria, while Self Select is for those who want to choose individual loans themselves.
Proplend has now loaned £ 130million since its inception.