When deciding how to fund and manage your fleet, many smaller to medium sized businesses are turning to leasing rather than purchasing the vehicles themselves, here are some of the reasons why:
Vehicle leasing can be a cheaper and easier alternative that doesn’t burden your business with rapidly depreciating assets.
It releases capital, improves cash flow and provides you with more confidence when forecasting vehicle expenditure.
With the optional maintenance package it releases you from the time-consuming burden of maintenance, repairs, tyres, accident management and vehicle disposal, allowing you to concentrate on your core business.
As a dynamic forward think company we seek out the best fleet funding and fleet management options, we benefit from strong relationships with have established with our suppliers, enabling us to pass savings directly to you, our customers.
Fleet funding is the leasing or purchase agreement that you put in place to finance your company vehicle arrangements. There are several funding options available:
- Business Contract Hire
- Sale & Leaseback
- Personal Contract Hire
- Finance Lease
Each funding option is designed to cater for different, specific fleet needs.
Although a simple concept in principle, Fleet funding can be a minefield if you’re not properly prepared. With so many companies, deals and advice out there in the market, it’s easy to get confused about which option is best for your business. What’s more, recent changes to UK tax law mean that the cost of funding fleet vehicles can vary considerably from one funding method to another.
The type of funding you choose can make a significant difference to your overall costs, risk and flexibility – so it’s crucial to understand everything properly before making your decision.
Here are some of the considerations:
- Cash flow
- Finance availability
- Tax implications and Balance sheet implications
We work very hard to explain how the Fleet Funding market works and help you to understand more about the options available to you, and their impact on your business.
Because we work with such a wide range of businesses, we understand that fleet funding needs vary widely. You may want ways to release capital or reduce your tax liability for example?
Choosing the right funding method for your fleet depends upon a number of factors and each situation can be different. As a general rule, it is helpful to consider cars and vans separately.
Here are some considerations: