How leasing can fuel your business in the new normal

How leasing can fuel your business in the new normal

Posted by

Martin Brown

May 2020

What does the new normal look like for you? Good question. Socially distanced desks? A one-way system in the office? Half the staff still working from home? Or is it impossible to return to work just yet?

All of these – and more – of that I have no doubt.

But in the ‘new normal’, whatever that is, there is a massive opportunity to rethink operations, reconsider tried and trusted ways, question the authenticity of business the way it was.

It has to be that way. The lockdown has accelerated many trends that we were already experiencing: increasing digitisation, the use of video conferencing to replace physical meetings, and the flexibility of homeworking.

All of these ask questions of pre-coronavirus business behaviours. And none more so than preserving liquidity within the business.

Our finance director, Angela Robertson, has worked tirelessly during lockdown to continually assess if we are being financially efficient. I’m sure the same is happening nationwide across businesses of all sizes.

So here’s something I want to put on the agenda. For those fleets that continue to outright purchase their company vehicles, I want to ask one question: is that the best way to use your finances – to wrap up cash in assets that are depreciating, and now subject to uncertain residual values?

As head of a fleet management company, I would seriously question that. Post lockdown, leasing has to be a more efficient way to retain funds within your business.

Business contract hire provides access to another line of finance that can be used to keep your employees mobile, or to provide a vehicle as part of your company’s benefits package.

It’s an inexpensive way to put drivers in cars and it is simple to budget compared with purchasing. Add in maintenance and your fleet’s business motoring costs can be fully budgeted save for fuel and insurance. And, of course, if you opted for a zero emission electric vehicle the fuel cost disappears. There is, also, no concern over unpredictable future residual values.

More than this, however, is the preservation of funds to invest in driving your core business forward. It provides your business the extra liquidity to explore new opportunities that the ‘new normal’ offers up. And strengthens the ability of your enterprise to withstand unforeseen financial shocks.

So while your company considers its financial efficiency, and plots a way forward in such an uncertain future, consider what leasing could do for your fleet. And for your core business.

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