What are my vehicle funding options?
An operating lease is one of the most commonly used methods of sourcing business vehicles, but there are other financing options that may better suit your organisation’s needs.
A fully maintained operating lease is a popular vehicle funding method for businesses due to its budgeting benefits, convenience and flexibility.
But what is it, and how does it work?
What is an operating lease?
Did you know that leasing can be a cost-effective solution to growing your business?
While critical to the efficiency of businesses that transport goods or provide a delivery service, having a fleet of vans is a significant investment that can weigh heavily on cash flow.
Providing your employees with the business vehicles they need to get the job done can be an expensive, but important investment. In many cases purchasing a new vehicle can mean a large lump sum payment that you’d probably rather not have to make.
‘Sale and Leaseback’ is a way of liquifying the capital you have tied up in your vehicles so you can invest back into your business and generate growth. Undertaking a Sale & Leaseback allows you to access the benefits of leasing by using vehicle assets that you already own.
The difference between vehicle lease types can be confusing concepts to understand at the best of times. However, by understanding these different types of leases we can start to remove the confusion around what can be valuable business tools.