THERE are so many reasons why it will benefit your business to opt for leasing a vehicle for company use in comparison to buying a vehicle.
Realistically, the struggle involved in starting a small business and heading towards success is anything but easy, which is why business owners need to take care with considering the pros and cons associated with each business decision to ultimately ensure success.
While controlling spending and extreme budgeting is needed to boost profit margins, reducing outgoing costs by leasing a vehicle will effectively decrease your companies capital costs.
The benefit of set monthly vehicle costs
It is not uncommon for small businesses to find themselves drowning in debt after relying on business loans to cover vehicle costs and other vital capital costs.
This is why opting for vehicle finance is realistically not the most logical solution as even gradually increasing interest rates can negatively impact a small business that is struggling with cash flow problems.
With the solution of leasing a business vehicle, startups and small businesses will have the ultimate benefit of a set monthly installment fee, which means that including vehicle costs in your companies budget will not be nearly as daunting.
What’s more, Intelligent Van Leasing provides some of the most incredibly affordable business solutions that will ensure you are able to drive a car that will promote the image of your company rather than simply serve as a mode of transport.
Enhance cash flow effectively
There are several effective ways to boost cash flow for your small business.
However, the fact that vehicle leasing is incredibly affordably will essentially increase cash flow for your business. A low monthly fee will allow you to direct your business funds to ultimately increase capital.
While buying a vehicle will inevitably result in spending needed business funds on a depreciating asset, a leasing agreement will save you money and help you avoid a large upfront payment that could be crippling for startup companies and smaller businesses.
Take advantage of available cars
Purchasing a vehicle will surely limit the available selection, which means that realistically you may not be able to afford cars that boast economic fuel consumption.
By taking advantage of the affordability that car leasing provides, you can enjoy the additional benefit of opting for cars that are fuel economic and further lower your monthly vehicle costs for your business.
In addition to this, your staff will be able to drive in new model vehicles which are not just beneficial for the image of your business as newer model vehicles are often far more reliable and durable. This means that company transport will no longer be a relevant concern.
Business car leasing includes the incredibly alluring benefits of tax advantages. With this charming solution, your business will reap the many benefits of avoiding high vehicle tax costs as you will only need to pay tax on a portion of the value of the vehicle rather than the whole value.
What’s more, you will also be able to take advantage of the ability reclaim tax on the vehicle lease.
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