Thought Leadership
Your Irish Finance Partner for Irish Buyers in the UK Market
Vendor Finance Ireland are an Irish asset finance brokerage who provide funding solutions to dealers for a wide range of assets. VFI established in 2014 to service a growing requirement of dealers providing “Vendor Financing” to assist them in securing the sale of their assets/ products. We are now a market leading brokerage servicing thousands of customers throughout the country. By helping the customer source funding, we support the dealer with the sale. These assets include new and used cars, vans, commercial vehicles, trailers, agricultural equipment, construction equipment, buses and all types of hard and soft assets.
We accept proposals through our website www.vendorfinance.ie and directly from customers and dealers over the phone.
Why are Irish Customers travelling to the UK to purchase Assets?
With the gradual increase in the Euro/GBP currency exchange rate over the last 3 years, (see graph below) Irish customers are obtaining used cars and business assets through UK sources more and more. From 2015 to 2018 the Euro has appreciated from £.70 to £.90, a rise of 28%. This currency movement is giving value to Irish dealers who purchase their stock in the UK.
Source: www.ecb.europa.eu
Based on limited supply considerations in the Irish Market, customers are continuing to purchase in the UK. With the Irish economy still predicted to grow at 4.25% in 2019, there will be continued demand for cross border asset purchases. Vendor Finance are ideally placed to source finance for customers participating in these purchases with our nationwide coverage.
Car Market
There have been large increases over the last three years in the number of private vehicles (cars) imported.
Between January and September 2018, 115k new cars have been registered compared to 75k imports (small numbers of Japanese and others included). These vehicles are predominantly imported by car dealers for stock through auction houses, fleet companies and local UK dealers. Irish finance companies generally do not provide consumer HP facilities for vehicles invoiced from the UK and as such, these vehicles are sold to Irish customers both through independent and franchise dealers. There are local considerations such as Vat and Vehicle Registration Tax which can complicate the process for consumers and, as such, the favoured method for the Irish consumer is purchasing these vehicles through Irish dealers.
Source: https://bit.ly/2JJuPFQ
Asset Market
Irish commercial customers have also tended to source both hard and soft assets through UK suppliers. The continued rise of internet search engine capabilities and online auctions are providing better access for Irish buyers, providing a far more user-friendly experience when purchasing UK based assets. Vendor Finance have experienced an increase in the number of requests from our direct customers to facilitate these transactions. We can support Irish customers buying in the UK with products such as HP, Leasing, Business Loans, Sale/leasebacks and 100% finance.
Vat Treatment
The UK asset is invoiced to the Irish Finance company using the Finance Company’s Vat number with a 0% UK Vat rate. Vat is then…Finance Company at the Irish Vat rate of 23%. The usual HP, Lease or sale/leaseback options then apply which deal with the Vat locally. The customer generally arranges delivery either to ROI or to UK ports for collection. The finance company will always undertake a bank account verification and supplier verification process.
Brexit
Although the upcoming British exit from the European Union will have an unknown and unquantifiable effect on British - Irish trade, Irish customers are continuing to purchase an ever-increasing number of assets from UK dealers. If the exchange rate continues to improve for Euro buyers as predicted, more and more Irish customers will be looking to source their business assets in the UK.
What Vendor Finance Ireland can do
Vendor Finance Ireland works closely with UK Asset Finance Brokers helping them source funding for ROI based customers purchasing assets from UK Suppliers. We work in partnership with UK brokers to give them access to our panel of funders which covers off all credit risk appetites. We source funding for all types of soft and hard assets and business loans.
Vendor Finance Ireland have a network of staff throughout the country who deal with customers in a hands-on manner and who will take care of all local documentation. Our head office in the North-West of Ireland manages the daily workflow and underwriting. All credit applications are processed centrally to turn them around as quickly and efficiently as possible and we have extended opening hours.
If you are interested in discussing funding arrangements for Irish business customers purchasing assets through UK suppliers, call our Vendor Finance Managing Director, Hugh Arnold on 00353 87 2932 035 or email harnold@vendorfinance.ie.
Visit our website www.vendorfinance.ie or Facebook page @VendorFinanceIre for more information on who we are and what we do.
Vendor Finance Ireland
