This business came to us seeking asset finance to fund a used Unimog with a VAT deferral as part of the agreement, in order to keep up with business growth and service new contracts.
The Highlights
- The final agreement required a 10% deposit, a 3-month VAT deferral and a 15% balloon payment
- £115,000 funded for a Unimog for a landscaping and groundworks company
- Structured as a hire purchase agreement, spread over 60-months
- The initial offer we received did not meet their requirements, so after careful negotiation and strong rationale we were able to secure a significantly improved offer
The Challenge
A newly formed landscaping and groundworks company based in Yorkshire was in need of a Unimog to support the next stage of their development. The business had recently transitioned from a sole trader to a limited company, having operated under its new structure for just one year. As a young company with no established trading history, they faced several challenges when seeking finance for the Unimog. They were tenants, had only a 5% deposit and required a VAT deferral as part of the agreement. However, initial offers from lenders fell short of their requirements, proposing a 20% deposit and no option for VAT deferral, terms that didn’t work for what they wanted.
The Solution
After careful negotiation and by presenting strong rationale to our panel of lenders, we successfully secured a significantly improved offer. The final agreement required just a 10% deposit, included a 3-month VAT deferral and a 15% balloon payment, ensuring the monthly repayments remained as manageable as possible. Impressively, this improved offer came from the same lender who had proposed the less suitable terms. Oakstone Finance successfully arranged £115,000 in funding, structured as a 60-month hire purchase agreement, tailored to support the client growth while preserving their cash flow.