Things to watch out for when dealing with Vehicle Finance
Regardless of your size and sector, vehicles can play a big part in your business. However, in order to reap the benefits that they offer, you need to find a way to overcome the initial cost outlay. But with Vehicle Finance, you can. Vehicle Finance offers your business access to a variety of business finance products that allows you to either purchase or borrow the vehicles that you’re seeking to acquire. But in order to make an informed decision, you must also appreciate what else Vehicle Finance may mean for your business. So before applying for Vehicle Finance, here’s what you need to consider.
- How is Vehicle Finance secured?
- How much does Vehicle Finance cost?
- Will you be required to maintain the vehicle?
How are Vehicle Finance agreements secured?
With Vehicle Finance, all of the business finance agreements that are available are secured. Although this makes Vehicle Finance accessible to a wide range of business, you also need to be aware of what this may mean should your business experience a cash flow shortfall, for example. If your business becomes unable to continue making monthly payments or defaults for any reason, the provider will take back the vehicle regardless of how it may affect your business’ operations. Therefore, you need to make sure that your business can afford the agreement before entering into any financial commitments.
How much do Vehicle Finance agreements cost?
Another factor to consider is what Vehicle Finance will cost as opposed to purchasing the vehicles from your own funds. Although Vehicle Finance allows you to spread out the overall cost of a vehicle/s over an agreed term, it will, in the long run, cost you more on account of interest. But spreading out the total cost involved the agreement will put less stress on your working capital and may allow you to acquire a higher spec vehicle than what you would have otherwise been able to afford. Therefore, you need to decide whether you prefer saving money or easing the pressure on your finances.
Will I need to maintain the vehicle?
With Vehicle Finance agreements you will be responsible for maintaining the vehicle. However, you may be able to pass certain responsibilities onto the vehicle’s manufacturer, providing that you’ve established a separate agreement with them. When discussing vehicle maintenance, the supplier will expect you to set up the appropriate insurance policies, breakdown cover, MOT tests and carry out necessary repairs. Therefore, before signing any agreement, check with the lender or supplier as to what you’ll be responsible for and whether your business can afford the additional expense.
Still thinking about applying for Vehicle Finance?
For many UK business owners, Vehicle Finance provides you with an invaluable means of acquiring the vehicles you need to operate and extend your services to more and more customers. This is especially true when you consider the initial cash outlay you’d need to make when using your own funds, potentially straining your working capital. But in order to gain access to the full range of benefits that are on offer through Vehicle Finance, speaking to a qualified finance professional would be a wise decision. So if you are hoping to bring in your first business vehicle or extend the size of your fleet, apply for Vehicle Finance today or find out more with Rangewell.