Asset Finance for CAT D6XE Bulldozer with VAT Deferral

The Scenario

Our client, a construction contractor, approached us in need of financing for a CAT D6XE bulldozer at a competitive rate.

While they’d received a quote directly from the supplier, they wanted a whole of market comparison to see if another lender could offer a better deal.

But they also needed to move quickly – their project was running to a tight schedule, and they’d need to keep it on track to fund their loan repayments.

Additionally, as this was brand new asset, there was a large element of VAT to be paid up front.

This meant that they could reclaim the VAT element of the invoice from HMRC, and then repay this back to the lender on their 3rd instalment. This is a common solution with asset finance products that many people aren’t aware of, and it gives you an added layer of flexibility when funding significant asset purchases.

The Solution

We set to work in contacting a range of asset finance lenders we knew could lend for this type of construction equipment.

After a phone call with our client collating the details, we were able to submit applications to multiple lenders, and had offers on the table the same day they’d got in touch.

While a few fractions of a percent may not seem like much on your interest rate, it can add up to thousands of pounds in repayments throughout the course of your loan – especially for larger loans, which is why it’s so important to use a broker.

We ultimately secured a 5-year fixed-rate asset finance facility with the VAT deferral in place, and the decision was secured in just 48 hours, with funds paid out in 72.

It’s a case that highlights the importance of using an asset finance broker if you want a fast, streamlined service and the best rates on the market.