5 reasons to grow your business with Vehicle FinancePublished on 30th May 2018 - Last update on 8th January 2019
For many UK businesses operating across various sectors, having access to business vehicles offers a range of benefits that can reinforce growth and sustainability. As well as helping you delve into unexplored markets, they can also be used to help you carry out heavy duty tasks, transport clients or even perform deliveries. However, the challenge that you’ll need to overcome may involve the upfront cost, which could be more than what your business can safely afford. This is where applying for Vehicle Finance can help. With Vehicle Finance you can gain access to a wide range of business finance solutions for any type vehicle in a manner that places less strain upon your working capital. So whether you’re looking to introduce a new vehicle to your business or upgrade your existing fleet, here are just some of the reason for why you should consider applying for Vehicle Finance, including:
- Gaining access to a range of finance solutions
- Suitable for any type of vehicle
- Reduced risk to your business
- Cost-effective solutions
- Suitable for a range of finance solutions
What Vehicle Finance solutions can I apply for?
What makes Vehicle Finance such a useful package for your business to explore is that it offers you a variety of ways to get hold of all the vehicles that you require. This is because Vehicle Finance covers an array of finance solutions, including Hire Purchase, Leasing, Contract Hire and Asset Refinance. Therefore, you could either purchase or borrow vehicles in a manner that’s affordable for your business. Just make sure that you’re familiar with how each of these products operates before submitting an application.
What types of vehicles can I finance?
Another aspect of Vehicle Finance that makes it so useful for businesses is that it can be used to finance any type of vehicle, regardless of whether it’s new or second hand. Whether you’re looking to acquire a fleet of luxury cars, bespoke work vans, utility tractors, dozers, trucks, articulated lorries or even mobile kitchens and workshops, applying for Vehicle Finance be the answer. As a result, this helps to make Vehicle Finance accessible to a wide range of UK businesses, regardless of your size and which sector you operate in.
How are Vehicle Finance solutions secured?
Although all of the products that are available through Vehicle Finance are secured, the way in which they are secured varies. With Hire Purchase, Leasing and Contract Hire, the vehicles that you acquire through the agreement are used as collateral. Should you fall behind in the fixed monthly rental or repayment scheme, the lender will simply repossess the vehicle/s in question - no other assets are affected. However, Asset Refinance uses assets such as equipment, machinery, vehicles or property that you or your business owns outright as collateral in order to release equity. So if you fall behind in the fixed monthly repayment scheme, the lender will have the right to repossess and remove these assets from your business.
How cost-effective is Vehicle Finance?
Another reason to apply for Vehicle Finance is that it’s a cost-effective way of acquiring vehicles for your business. This is because Vehicle Finance allows you to spread out the total cost of the vehicle over an agreed period, rather than you needing to use large sums from your cash reserves in order to fund an upfront purchase. Depending on your chosen product, you’ll either need to make fixed monthly repayments of pay a fixed monthly rental, making it easier for you to maintain control over your budget. Plus, because the finance products available through Vehicle Finance are secured, you will usually be offered lower interest rates compared with an unsecured product. As such, you could even acquire higher quality vehicles than what you could have otherwise afforded.
How do I qualify for Vehicle Finance?
Finally, because of the way in which Vehicle Finance is secured, you could still receive an agreement even if you have adverse credit. Nevertheless, lenders will usually ask to review your business’ credit profile in order to gain a better understanding of your financial situation and how well your business is performing. As such, when carrying out their credit checks, lenders will check whether you have any unresolved CCJs, Accelerated Payment Notices (APNs), arrears, debt and your history of repaying debt on time. If there are any issues lenders need to be aware of, be upfront as this will help strengthen the credibility of your application. However, even though your credit profile and score won’t always be used against you, it may affect the interest rate that you’re offered. If you’re worried about what effect your credit profile may have on your application, you can read more on the topic here.
Thinking about growing your business with Vehicle Finance?
Vehicles can come in all shapes and sizes, allowing them to perform a wide range of tasks and services in and around your business. However, they also tend to come with a high purchase price which can be more than what your business can afford. If you don’t possess the necessary capital, it can result in you delaying or abandoning certain business goals, which could affect your ability to grow and compete. Yet, if you believe that your business could benefit from additionals vehicles, Vehicle Finance could be the answer. But with so many products to choose from, how can you be sure that you are applying for a suitable finance solution with a competitive rate? Simple. Whether you are searching for luxury cars, work vans or dozers, apply for Vehicle Finance today or find out more with Rangewell.
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