Client: Leasing Company
Loan Amount: Circa. £150,000
In this specific case, a well-established leasing company based in the UK reached out for assistance due to an unexpected strain on their working capital caused by an upcoming VAT bill. This situation created a significant challenge for the business, as it struggled to maintain sufficient cash flow to meet regular operational expenses, such as payroll and other existing commitments. Consequently, the company found itself heavily reliant on its overdraft facility, which was not a sustainable long-term solution.
Recognising the urgent need for a viable financial solution, Enness stepped in to provide support. After thorough negotiations, we secured an unsecured VAT loan of c. £150,000 with a repayment term of just three months. This strategic financing option offered the company much-needed flexibility by allowing it to spread the burden of the VAT payment over a more manageable time frame rather than facing the daunting task of paying the total amount in a single instalment.
The lender facilitated the process by making the payment directly to HMRC on behalf of the client. This ensured that the VAT obligations were fulfilled on time, preventing potential penalties or service disruptions. Following the payment to HMRC, the client was responsible for repaying the lender, allowing them to focus on their core business operations without the immediate pressure of the VAT bill weighing them down.
The entire solution was effectively implemented in under one week, showcasing Enness's efficiency and responsiveness in addressing the financial needs of our client. This case not only highlights the importance of having access to flexible financing options but also emphasises how timely intervention can help businesses navigate challenging financial situations and continue their operations smoothly.
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