Financing Your Fleet of Vehicles - Asset Finance

683 views

Published on

Important information on how to finance your fleet of vehicles. Whether you need to finance a fleet of lorries, trucks, vans, motorbikes, or cars - this presentation tells your everything you need to know about the options available to you.

By NGI Finance

Published in: Business
1 Comment
4 Likes
Statistics
Notes
No Downloads
Views
Total views
683
On SlideShare
0
From Embeds
0
Number of Embeds
12
Actions
Shares
0
Downloads
9
Comments
1
Likes
4
Embeds 0
No embeds

No notes for slide

Financing Your Fleet of Vehicles - Asset Finance

  1. 1. FINANCING YOUR FLEET OF VEHICLES How to finance your vehicle fleet, by NGI Finance
  2. 2. Introduction: Nearly every UK business dealing with logistics must consider their fleet of vehicles, and the cost of keeping it running. Depending on the nature of your business, you may operate lorries, vans, cars, or even motorcycles. Asset Finance can offer you the best way of getting hold of the vehicles you need.
  3. 3. Introduction: Deciding which finance option is best for the enterprise usually involves a customised solution based on many considerations. Fleet financing can affect many aspects of the business, so financing this aspect effectively deserves the management’s undivided attention.
  4. 4. What To Consider: • VAT – VAT status can affect financing options. • Corporation Tax – Organisations can benefit from corporate tax deductions through effective finance. • Vehicle Contracts – Ensure that contract periods are realistic for your business.
  5. 5. What To Consider: • Funding Costs – It is essential to compare interest rates and other requirements. Not all financing is created equally. • Risk – Identify all associated risks. • Balance Sheet – Identify your financing choice’s impact on your balance sheet.
  6. 6. Types of Financing Options: • Contract Hire – This solution consists of a contract with a fixed price and pre-set mileage standards. This enables the company to enjoy a fixed rate for the duration of the contract agreement. If the mileage limit is exceeded, the cost of the lease will increase by a lump sum payment at the end.
  7. 7. Types of Financing Options: • Outright Purchase - This option involves the company taking hold of a fleet of vehicles using credit made available by banks or lenders. As the owner of the vehicle, the company provides and manages its own maintenance.
  8. 8. Types of Financing Options: • Finance Lease – With finance lease, the business can use the vehicles but has no interest in total ownership. In most cases, the business turns the asset over to the leasing company at the end of the term. In some cases, the owner may have the right to purchase the vehicle at a fixed rate at this point.
  9. 9. Types of Financing Options: • Contract Purchase – With this solution, the organisation leases the vehicle for a specified time and is then obligated to pay an agreed amount to take title to the vehicle. In certain Contract Purchase agreements, the business can decline to purchase the vehicle and opt out for a pre- determined fee.
  10. 10. Types of Financing Options: • Employee Car Ownership – Under this finance solution, the employee purchases a vehicle over a defined period of time via a credit-sale agreement. At the conclusion of this plan, the individual can purchase the vehicle or agree to its return.
  11. 11. Conclusion: There are multiple solutions available on the market should you wish to finance a fleet of vehicles for your organisation. Whether you need to finance company cars, a fleet of vans lorries, or agricultural vehicles, NGI Finance can help you find the perfect option, allowing you to access the best vehicles when you need them most.
  12. 12. Also Read: How to Finance a Fleet of Vehicles Asset Finance For Liquidity and Credit Business Loans: A Viable Way to Grow Your Business?
  13. 13. For more information… Call NGI Finance on 01993 706403 Visit our website: www.NGIFinance.co.uk

×