Hitachi Capital Business Finance has made a change to the way customers can repay a loan by offering the option to fund VAT across the term of an agreement.
An industry first, the scheme means customers are no longer required to pay for VAT upfront as a deposit, as is currently standard across the sector, and are able to spread the cost evenly over the period of the agreement.
Previously, customers would put in a VAT reclaim to HMRC to retrieve their deposit, which left a temporary hole in their finances as they waited for the money to come back.
Gavin Wraith-Carter, managing director at Hitachi Capital Business Finance, said: “This is a significant and positive innovation that we are introducing, which has the customer at its centre.
“The scheme is designed to ease our customers’ cash flow and reduce the impact of a substantial up-front payment. It allows them to take further control of their finances, without having to rely on the HMRC to reclaim their money.
“At Hitachi Capital Business Finance, we work with small businesses to help them achieve long-term, sustainable growth. This includes reducing the list of worries that could keep them up at night, helping to make their costs more manageable and offering peace of mind. Our latest initiative adds to the long list of reasons for customers and introducers to choose us to fund a deal.”