We were approached by one of our valued brokers in order to renew an existing VAT funding line for a mutual client. The client in question was a large multi-Partner chartered accountancy firm which regularly seek funding for their quarterly VAT liabilities, given the sum payable represents a large chunk of their annual revenue. With nearly £1m due annually for VAT, getting the right funding plan is essential.
As an existing client, we required very little additional information to provide an approval. However, there were a number of challenges for our underwriters when we were first introduced to this particular business last year. They had made a number of recent acquisitions which had impacted their balance sheet and levels of liquidity in the short-term. Fortunately, we were provided with an excellent summary from the broker along with extensive financial information which allowed us to fully understand the business and be comfortable that their purchasing and funding strategy was sound. Our credit managers also prefer to talk to brokers directly about credit decisions, which we find provides a much better service.
We were able to provide the introducer with a quick decision which enabled us to have everything prepared for payment well before the HMRC due date.
Loan size – £220,000