Did you know that if you're VAT registered, you may be able to defer the VAT for 3 months as part of your agreement?

If you're VAT registered and up to date with your VAT payments, you may be able to defer the VAT for 3 month period as part of your finance agreement.

The facility is subject to credit and although you do pay a small amount of interest for the facility, a lot more people are opting for the deferral option.

Businesses claim the VAT back within their next quarter, but it wouldn't be payable to the lender for 3 months. 3 months after the agreement went live, the VAT would be taken by direct debit.

Although you can still choose what deposit you'd like to contribute, it does mean the required deposit is a lot lower and may mean your monthly payments are lower too (as you're effectively paying a higher deposit overall).

A lot more customers are preferring a VAT deferral as part of their agreement, as it keeps cash within the business and also means cash flow isn't impacted as much for the new purchase.

If you have any questions regarding deferrals or how we can can tailor a quote for you, please feel free to get in touch with one of the team