There are many different reasons why you may need fleet finance – perhaps you are expanding your business or maybe you are just starting out? Irrespective of your situation, you will have a lot to take into account. In this post, we are going to go over some of the options that are available to you while also providing some top tips for you to bear in mind…
Finance Lease
Let’s begin with a finance lease, which is one of the most popular forms of van finance. This solution is preferred because it is the most manageable in terms of finances, as you will pay monthly payments, which also include VAT being spread across these payments too. With the right telematics solutions, you will be able to have a full overview of all monthly expenses, from fuel to repayments, so make sure you use this to understand your monthly costs. If, you cannot afford a large deposit payment, this is the ideal solution for you. Finance leases are also ideal for businesses that are not registered for VAT and, therefore, are unable to clam the VAT lump sum that is applicable in hire to purchase contracts, which you will discover more about below.
Hire Purchase
More and more business owners are turning towards hire purchases for their fleet a vast assortment of reasons. When you go for this option, you will make monthly payments, and then at the end of the contract, you will have the option to buy the vehicle. If you choose to do so, the payments you have been making so far will be deducted from the overall cost. This is ideal for those who want to own the asset yet do not have the upfront costs at present to be able to do so. This gives small businesses and start-ups a great platform to compete with the bigger business out there.
Structured Loan Payments
The third finance option that is worth considering is structured loan repayments. This is when you have a monetary plan that is designed to suit your exact needs – it is a bespoke service. The lender will listen to your requirements and your financial situation and they will put together a solution that is entirely based on your requirements. This minimises risk, as the product has been completely designed to suit your situation. This is something a lot of companies prefer when they have a unique financial situation or they want ultimate security.
These are three of the options that you should definitely consider when it comes to van financing and purchasing. There is no right or wrong answer when it comes to choosing an option – it is all about determining what is going to work the best for your situation. Remember, all companies are different, and so when you are choosing a lender you need to make sure you keep various points in mind. You will want to discover the rate of interest they charge and their fees, while you should also consider the payment terms, and it is a good idea to assess the company to see their level of experience and their reputation in the industry so you can be sure of a good service.
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