When securing finance for cars, vans, construction and machinery under Hire Purchase terms there is normally a requirement for the VAT element to be paid up front.
Even though the VAT is fully recoverable for VAT registered businesses, this initial outlay can put severe pressure on cash flow due to the fact that funds may be out of the business for as long as 3 months before the VAT return claims it back.
Here at Credo, we offer an option to defer the VAT for up to 3 months from the date the finance agreement commences.
The customer can then submit their VAT claim immediately on purchase, ensuring that the VAT is refunded to them by HMRC before it’s due to be paid. This can be a huge boost to a business’s cash flow and helps to secure the asset.
Why not give us a call so that we can discuss your finance needs specifically to you and your business.