PMD can now fund the full VAT, on asset finance deals, over the term of the agreement. Bearing in mind we can arrange these transactions with no deposit the effect is no cash outlay at all and once the client claims the VAT back they’re releasing 20% of the cost price back in to their cash flow.
If the cost price of the asset is £100,000 ex VAT the full VAT inclusive amount is £120,000 and this amount can be financed over 5 years. When the client makes their next VAT claim, they will receive the £20,000 VAT element back in to their cash flow – a very simple but effective method of raising some cash whilst funding assets at competitive rates.
This is a really flexible scheme that can help fund intangible parts of an asset project or just to bolster the client’s cash flow. It’s a very effective ‘cash back’ scheme.
Of course it’s subject to credit but there is a real appetite to support SME’s and write deals on this basis.
For more information or new business enquiries please contact Tom Brown directly on 07793 242 280 or 0161 633 2548