Vat Arrears? Large Payment Terms? Low on Cashflow?

Here’s how I helped a haulage company clear their VAT debt and release up to £500,000 in working capital on Day 1.

For context, this was a haulage company supplying major supermarkets.

For 5 years, they’d funded growth from their own cash flow with only a £50,000 overdraft. But things were changing.

As they won bigger contracts, customers started paying on 60–90 day terms. And often, even later. Cash was getting tighter.

They also had VAT arrears that had been sitting there for over a year.

So here’s what we did:

→ Arranged short-term funding to clear their VAT debt.

→ Implemented an invoice discounting facility. This released up to 90% of their ledger on Day 1, around £500,000 straight back into the business.

As a result, stress was taken off from the directors about cash flow. They had the funds to hire more drivers for the Christmas peak. Customers could book more delivery slots.

And most importantly, fuel bills were paid on time. (In haulage, if fuel cards stop working, trucks stop moving.)

In business, cash flow is oxygen. Without it, nothing moves.