The Benefits of Business Vehicle Leasing

Posted by Avenyou on April 19th, 2021

Vehicles are a valuable resource to any business. They are vital for the transportation of staff of providing customers with a service, although deemed an important asset, they come with challenges, particularly for the smaller companies. They are a large investment with a big up-front cost. This is where business vehicle leasing can help.

Financing a vehicle through a business is a cost-effective process for businesses to obtain the benefits that the vehicle provides, now, without affecting the cash flow of your business, or any hefty unforeseen costs if the vehicle needs to be suddenly replaced or purchased.

What are the benefits of business vehicle leasing?

Financing a vehicle through a business has become a common choice for business leaders due to its benefits; this includes:

1) The removal of unforeseen costs, freeing up capital and improving cash flow.
2) Providing businesses with an additional line of credit, and financial assistance to the company – this is useful if future purchases are expected.
3) Preventing any accounting issues of asset depreciation, offering the business to use the vehicle without this worry.

Asset finance and leasing is more beneficial than taking out a loan to pay for the vehicle due to the ownership of the asset. When it comes to business vehicle leasing, it is the lender who takes ownership of the vehicle for the duration of the lease. Therefore, the vehicle appears in the lenders books as they take responsibility of any potential risks. It is not until the lease has ended when the risk and disposal of the asset shifts to your business.

Hence, financing a vehicle through a business is about flexibility and control. It provides instant access to essential equipment, like vehicles, without disrupting other business processes.

How Avenyou can assist

Avenyou’s business finance brokers are dedicated in helping businesses no matter their size with their business vehicle leasing needs. We are devotedin our capability to become more than a source of finance to our clients, but a genuine “value add” and partner to their needs. We aim to assist our clients in finding the finest solution and source of finance for your equipment needs.

For further information on our products and services, or to discuss financing a vehicle through a business, click here.