£210,000 of vans on the road, without the VAT landing all at once

Customer situation

An industrial door and shutter installer expanding its fitting teams and needing seven vans on the road at the same time.

Asset required

Seven commercial vans, approximately £210,000 in total.

The challenge

A fleet that size creates two problems, and only one of them is the finance. On £210,000 of vehicles the VAT is a substantial sum falling due long before any of the vans have earned a penny back — and the vehicles still had to be sourced before anything could be funded.

Options considered

• Outright purchase — would have taken £210,000 of working capital out of the business in one movement.
• Dealer finance on each van separately — seven agreements, seven end dates, and no help with the VAT timing.
• CW Asset Finance route — source all seven vehicles and fund them as one agreement with the VAT deferred.

The CW solution

We handled both sides. We sourced the seven vans and arranged the funding as a single 60-month hire purchase agreement, structured with the VAT deferred so it was not payable up front. Spreading the cost over five years kept the monthly commitment proportionate to what the fleet earns, and deferring the VAT kept cash in the business during the weeks the vans were being put to work.

Key outcome

Seven vans working, £210,000 funded over 60 months, the VAT handled in step with the company’s own returns, and the vehicles owned outright at the end of the term. The client has told us they will be back for the next round.

“Sourcing and funding through one point of contact means one conversation, not a dealer negotiation running in parallel with a finance application, each waiting on the other. On a seven-van order that is the difference between weeks and months.”

— Conor, CW Asset Finance

Every application is assessed on its own merits and all finance is subject to status and lender approval. This is one client’s outcome and is not a guide to what any other business will be offered.