Leasing vehicles in a Post Covid-19 market.
The Covid-19 pandemic has created unprecedented times globally. As we all come to terms with the new environment the way in which we do business has changed, what role do leasing business assets and vehicles play in making your business future-ready?
Lease Link has talked to industry experts about vehicle leasing and how this can help businesses achieve growth in a post-COVID-19 environment.
More will be done online
Following the lockdown, consumers have been forced to order online, whether it is essential goods during level 4 or non-essentials as we have moved into level 3 and below. One trend that is predicted to increase is the level of online activity and ordering. Is your business ready for the next level of growth that requires you to service these orders?
For some businesses, it is a legitimate consideration to carry out the delivery of these orders yourself, especially if the option of outsourcing delivery is taking a big bite into your profit. Leasing a vehicle for deliveries is cost-effective and a tax-deductible way of supporting this growth and often creates a better experience for your customers as you are better able to control the distribution channels. Not to mention giving you a highly visible branding opportunity.
Did you know you can also lease machinery?
If you are expanding your business to incorporate deliveries or you are a logistics business, you may not be aware that you can also lease trucks, lease machinery, even lease forklifts and warehouse handling equipment like lifters and pallet jacks.
Leasing these expensive assets does not tie up capital or affect your balance sheet with large debts to fund these.
Sale and lease back your vehicle fleet
If your business is struggling with cash flow and you own the vehicles in your fleet outright you could consider a sale and leaseback.
During the COVID-19 Lockdown, most businesses have experienced a downturn in trading, this can put significant pressure on cashflow. It is very common for businesses to have a lot of money tied up in vehicle finance to fund their fleet whether it is funded through capital or vehicle finance.
If your business is struggling with cash flow and you own the vehicles in your fleet outright you could consider a sale and leaseback. This means that a leasing company would buy your vehicles at market value and lease them back to you, paying you the market value of the vehicles provides you with cash for you to use in other ways within the business.
Help to control costs through extending your vehicle lease term.
A fully maintained operating lease includes all maintenance, licencing and servicing of the vehicle including things like tyres. This really helps with budgeting and controlling costs during a time when business performance is down.
Leasing a vehicle for 4 years rather than 3 can save hundreds off the monthly premium so make sure you explore options around extending the lease term.
Free advisory service
If you just want to discuss options on how leasing can benefit your business, get in touch with the Lease Link team by clicking [here] for a free no obligations chat about your business fleet and machinery leasing options.