Finance Need: Danny and his semi-retired father have run a haulage business for over 25 years and pride themselves in running a smartly presented and well-maintained fleet of trucks and trailers. Having weathered numerous recessions over the years Danny and his father were aware that even when times are good it’s wise to conserve cashflow wherever possible.
The business had a need to acquire another DAF and initially, Danny was inclined to buy a brand new 2015 DAF costing in excess of £50,000. Having given this careful thought, it became apparent that the DAF would operate through the night on local work and cover a relatively low annual mileage. Would this type of work and modest income justify an investment of over £50,000?
The Situation: Danny identified a used DAF for sale which had covered a low mileage but was 7 years old and cost only £24,000. Some finance companies are not willing to accept an invoice for a 7-year-old DAF which was being sold by another haulier and not an HGV dealer.
What Arkle Did: Arkle understood Danny’s reasoning to buy the used DAF and wish to minimise his Hire Purchase repayments and deposit contribution. Arkle provided Hire Purchase funding with a 10% deposit, the VAT applicable to the cost price was deferred by 3 months and the balance financed over 3 years at a competitive rate of interest.