Why small businesses can benefit from vehicle leasing
- Low initial payments, typically 3 or 6 in advance
- Fixed costs for the term of the contract, usually 2 – 4 years in duration
- 50% of the VAT is reclaimable on the rental of the vehicles (where personal use)
- Maintenance agreements can be taken out to further fix costs
- Leasing offers SMEs the chance to run a newer, more fuel-efficient fleet of cars
- In many cases, competitive leasing car deals can be cheaper than the cost of ownership
- A good company car scheme will attract and retain key employees
LEASING is often perceived as a form of vehicle acquisition that is reserved solely for the preserves of the “big boys” – large corporate companies that can benefit from great car leasing deals because of the amount of company cars that they run.
For this reason, many UK SMEs may not consider car leasing as a form of funding. In fact, leasing a car is available for every type of company, including sole traders and small limited companies, whatever the size of its fleet.
Paul Bulloch, Director of Concept Vehicle Leasing, said;
“We specialise in providing vehicles to all sizes of company, and are proud that the leasing deals we offer are highly competitive no matter how large or small the requirement may be.
“Because we have a wide portfolio of funders, and excellent, long-standing partnerships with manufacturers, we are in a position to use our buying-power to make sure that our contract hire offers are always excellent value for everyone that we deal with.”
Paul continued: “We pride ourselves in our customer service – if we have one vehicle or twenty vehicles on order for a client, we ensure that a dedicated member of our team is assigned to them and we keep them up to date with all developments. We can also provide initial guidance for anyone that may be new to leasing and would like to find out more.
“Many companies that have made the transition to leasing simply keep on funding company vehicles in the same way the next time round; we keep in touch with them prior to the end date of their lease to co-ordinate the delivery of their next vehicle so that any down-time is kept to a minimum.”
Of course, there are minimum requirements when it comes to whether any business will qualify for business leasing, but size is not one of them.
Paul concluded: “Generally, if the business is profitable, is not a new-start and has a good credit rating, there isn’t a problem when it comes to underwriting leasing deals. Each funder will have different criteria though, and some may ask for information like accounts or bank statements, but this is something we are here to help the customer with to make the process as easy as possible.”
