The practical answer
Understand the risk first: if funding does not complete, the supplier’s terms may still allow it to retain the money.
Ask whether the deposit can be made conditional on finance and get the refund conditions in writing. Confirm the asset, invoice route and payment structure with the broker before transferring funds.
Credit approval may still have conditions, so distinguish it from a facility ready to pay. A supplier saying that finance should be easy is not a lender commitment.
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 →