Vehicles are an important asset to any business. They can be used to transport staff, or provide customers with a service, although they are an essential asset, it is also one that comes with challenges, especially for smaller companies. Vehicles are a big investment and come with a great up-front cost. This is where business vehicle leasing can assist.
Financing a vehicle through a business is a practical and cost-effective way for a business to receive the benefits that the vehicle offers, now, without affecting your businesses cash flow or – if your vehicle needs to be suddenly purchased or replaced – striking your business with a hefty, unforeseen cost.
The benefits of business vehicle leasing
Financing a vehicle through a business is a smart choice for business leaders due to the benefits, including:
- It frees up capital, improves cash flow and removes unforeseen costs.
- Provides the business with an added line of credit and financial assistance service to the business – this is useful if potential purchases are anticipated.
- It prevents the accounting problems of asset depreciation, granting the business to use the vehicle without the need to worry.
The benefit of asset finance and leasing, over taking out a loan to pay for the vehicle is related to the ownership of the asset. Regarding business vehicle leasing, the lender takes ownership of the asset for the period of the lease. Meaning that the vehicle appears in the lenders books, and they take responsibly of any posed risks involved. The risk and disposal of the asset then shifts to your business only once the lease has ended.
Thus, financing a vehicle through a business is about management and flexibility. It offers you instant access to essential equipment, such as vehicles, without interrupting your business in any other way.
How Avenyou can help
Avenyou’s business finance brokers has a history in helping businesses no matter their size with their business vehicle leasing needs. We are committed on our ability to become more than a source of finance to our clients, but a genuine “value add” and partner to their needs. We are dedicated to helping our clients find the best solution and source of finance for your equipment needs.
For more information on our products and services, or to further discuss financing a vehicle through a business, click here.