The purpose of this product is to provide a short term bridging finance facility to newly established industrial companies for the payment of VAT on equipment purchased or to newly established medium sized property owning companies for the payment of VAT in respect of property acquisitions.
The basis of the agreement is that the client pays interest calculated for 4 months upfront.
The company’s auditors co-sign the agreement and undertake to claim the VAT from the receiver and change the address/account details for the payment of VAT refunds to that of the auditors.
Upon refund of the VAT claim, the auditors refund the outstanding amount to Ithala.
This facility is to be used for newly established companies only where no output VAT will be applicable which can reduce the amount of the claim. The product is only available to clients making use of another Ithala product.
Term of loan
Upon receipt of VAT refund or after 4 months, whichever is the earlier.
Loan agreement signed by both client and his auditors. Alternate security cover may also be arranged.