The new scheme will mean that customers are no longer required to pay for VAT upfront as a deposit.
Instead, they will be able to spread the cost evenly over the period of the agreement.
In the past, customers would have had to put in a VAT reclaim to HMRC to retrieve the deposit, which resulted in them having a temporary hole in their finances while they waited to be repaid.
Gavin Wraith-Carter, managing director at Hitachi Capital Business Finance (pictured above), felt that it was introducing a positive innovation.
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“The scheme is designed to ease our customers’ cash flow and reduce the impact of a substantial upfront payment.
“It allows them to take further control of their finances, without having to rely on the HMRC to reclaim their money.”
Gavin added that Hitachi worked 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.”
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