This legislation, the first of its kind in the UK should it come into effect, will affect a staggering 130,000 businesses; which could be implemented after the UK leaves the EU.
The huge worry is where businesses will find the cashflow to pay VAT costs upfront. They will not have had the chance to sell on or use the imported products in billable, chargeable works; which normally would be paid before the bill was due. Now businesses, on top of already having to juggle cashflow and working capital in tense economic times – unexpected repairs, late paying customers and seasonal lows for example – will also have to stump up cash to pay their import VAT.
The consequences would be crippling.
Already, half of SME businesses fail in their first five years due to lack of cashflow.
How will this rise after Brexit and upfront VAT costs?
That’s where Capital Corporate Finance step in and help!
Experts in the field of invoice finance, let us introduce your business to the best providers of invoice factoring in the UK.
The pioneering invoice finance facility sees businesses paid, up to 90%, within 24hrs of their invoices being issued, with the balance being paid once the invoice is paid by the business’s customer.
Businesses are paid on the monies they are actually owed. There is no borrowing of money. The facility is cost effective, as well as an extremely efficient was of managing cashflow.
By arranging your invoice finance through us here at Capital Corporate Finance, your business will have access to better rates and quicker turnaround times – this is because we are one of the largest introducers of the business to this market.
We carefully assess your business and its need, matching you with the most suitable lender. We are the only truly independent UK broker of factoring and as such we are priority is finding you the right finance deal.
There are over 40,000 UK businesses already using invoice finance to manage their cashflow; giving them access to valuable working capital – this figure is expected to grow as more cashflow demands are made on UK businesses during Brexit negotiations.
Today – 8th January – it is reported that Chairperson of the all-party Treasury Select Committee, Nicky Morgan, has raised an urgent investigation into this change, as well as penning a letter to HMRC regarding emergency contingency plans to protect UK businesses.
For more information on Capital Corporate Finance services, including invoice finance, peer to peer lending, banking, as well as unsecured and secured loans contact the team today on 07785 596053 or email email@example.com
Image courtesy of Stuart Miles at FreeDigitalPhotos.net