The practical answer
The supplier and lender must accept the arrangement, and the additional borrowing should be disclosed in the affordability assessment.
Check whose card is being used, how the payment is evidenced and whether the deposit is refundable. A director’s personal card payment may need explaining separately from company funds.
Include the card repayment in the cash forecast. Borrowing the initial contribution does not make it free cash and may affect the lender’s view of the complete proposal.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: VAT on asset finance →Explore the relevant guides
New-start asset finance — For limited trading history, director experience and supporting evidence.