The practical answer
It may be considered, but the cash cost and any irrecoverable VAT need to be included in affordability planning.
Tell the broker the business’s VAT position and ask for a proposal showing the actual initial and ongoing payments. Do not assume a price advertised excluding VAT is the total cost.
Ask your accountant about the business’s own VAT treatment. Being able to obtain finance does not create a right to reclaim VAT or make all VAT charges eligible for funding.
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 →