The practical answer
Potentially, but the net equity after settling any existing finance must be clear and acceptable to the lender.
Obtain a written allowance and a current settlement, then calculate the amount genuinely available towards the replacement asset. If settlement exceeds the allowance, there is a shortfall rather than a deposit.
Ask how the supplier will show the trade-in, settlement and VAT on invoices. Do not treat the full advertised trade-in value as cash available while ignoring the old balance.
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: VAT on asset finance →