Paying VAT up front can be a cause of concern for businesses. Under the terms of a Hire Purchase this is usually a requirement for securing assets such as vehicles and machinery. Although VAT registered businesses can have this money returned to them, the process can take up to 3 months. This can cause a significant dent in the cash flow of a business. This can be an issue for new businesses, as the initial few months are often crucial to their long term success.
At Ignition we want to alleviate the financial strain of purchasing new assets. That is why we are able to defer VAT payments for a period of up to 3 months. This deferral period would start from the date of the initial financial agreement.
The customer can then start the process of reclaiming their VAT from HMRC. This minimises any delays in securing funds, so your business’s profit margin quickly returns to normal.
If you are a business owner with financial concerns, our expert team are here to assist any way they can. To get in touch with Ignition please call 01872 272 900 or send us an online enquiry form.