Finding Finance Solutions to Challenging Situations

The Challenge

When it comes to buying new assets, some suppliers will structure a deal with preferential payment terms to help the customer and seal the deal. We recently supported a local, returning customer who receive 90 day payment terms with their usual supplier.

The new asset was exactly what they needed to support their own customer base however, the supplier on this occasion wasn’t able to offer the same terms as their usual supplier. The customer had only just submitted their latest VAT return and with the machine costing around £120,000 + VAT, they were going to be without a large chunk of money for 3 months before they could claim it back.

At Focalise, we like a challenge. We are used to offering flexible payment terms but the non standard payment terms the customer was looking for aren’t the usual for most of the 70 lenders on our panel. Using our existing relationships we have built over almost a decade in the industry, we began to speak to a few of the lenders to see if this was something they could accommodate.

Within a short time frame, we had an approval in place which had not only deferred the VAT for 3 months to match their next quarter, but we were also able to defer the deposit for the same amount of time. All the lender needed was for a nominal monthly payment in the interim before the agreed monthly rentals would begin. Check out the illustration below. 

The supplier received funds for the asset they’d sold and Focalise have another happy customer with their brand-new asset in the yard ready to support more local businesses.

Challenge accepted!

Below we illustrate how we structured the finance.