← Commercial Finance Answers

Imported machinery & supplier payments

Should import VAT and duty be included in the finance budget?

Yes. Establish the total landed cost and timing with your customs or tax adviser, then ask which amounts the lender can consider.

The practical answer

Yes. Establish the total landed cost and timing with your customs or tax adviser, then ask which amounts the lender can consider.

Separate machine price, transport, customs charges, import VAT and installation. The actual treatment can depend on the transaction, destination and the business’s circumstances.

Do not assume overseas machinery is VAT-free or that lender funding pays every tax charge. Confirm accounting and recovery arrangements with your accountant and keep cash available for any amounts outside the facility.

Important

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: Imported machinery finance →

Explore the relevant guides

CNC & manufacturing finance — For production machinery, tooling and commissioning plans.

VAT on asset finance — For VAT timing and the cash needed alongside funding.

Further guidance

GOV.UK: importing goods into the UK