Coronavirus: it may not exactly be on the run yet, but a rapid vaccine roll out has turned the UK around, from being a prisoner of the virus to one beginning to embrace social engagement once more. But how has the pandemic affected your business? For some it’s been a case of retrenchment and survival. … Continued
Coronavirus: it may not exactly be on the run yet, but a rapid vaccine roll out has turned the UK around, from being a prisoner of the virus to one beginning to embrace social engagement once more.
But how has the pandemic affected your business? For some it’s been a case of retrenchment and survival. But as business emerges blinking into the post-pandemic light there’s likely to be a two-step process for ongoing survival: transitioning the business carefully back to operational safety, while quickly taking advantage of the new opportunities that the pandemic has accelerated into focus.
To do this successfully means divesting the business of asset drag and boosting the balance sheet to increase the company’s liquidity; it means unlocking cashflow to support strategic capital investment.
Where does the car fleet fit with post-pandemic growth?
The car fleet is transitioning from traditional diesel cars to a cleaner electrified future, as the Government hastens sector decarbonisation. Latest industry thinking suggests that more than 50% of car fleets with over 500 employees will be fully electric within three years.
Purchasing such new technology will be critical to meet customer expectations on environmental performance, as well as taking advantage of the lower running costs of electric vehicles. It will also benefit employees with reduced BIK taxation.
However, heavy investment in depreciating assets, such as fleet, drains cash flow and diverts liquidity into non-value adding assets rather than supporting cash-generative new business goals.
There is also the question of employee resource and administrative time required to run a fleet, which could be refocused on business expansion support if your business considered leasing its cars and vans.
How leasing can liberate cash-flow and offload administration
Business leasing concentrates your liquidity on business growth rather than asset management.
In place of wrapping up company finances and employees in fleet purchase and management, business leasing reduces cash drag with its predictable budgeted monthly rentals, while offering tax and VAT efficiencies, and minimising internal administration thanks to Fleet Alliance’s expert fleet management processes.
Our multi-bid funding process, using some of the most competitive contract hire providers in the market, continually seeks to reduce acquisition costs by ensuring commercial tension resulting in your business receiving the lowest lease rentals, rather than relying on one funder’s lease rates.
If you want to understand how our competitive tender strategy and fleet management can help your business flourish in the future then contact us for a demonstration of how it will work for you.
You can also view a summary of our key services here and request a personal call back directly from me. I look forward to helping you release the value in your fleet.
Imagine this: you drive a zero emission car, so you’ve eradicated local pollution issues. Good. All positive. Then add this capability: the ability to suck up and ‘clean’ air pollution as you drive. Hold on, what….? In my mind it’s a bit like drinking beer and having a filtration system that ensures you don’t wake … Continued
Tesla has a certain knack of creating headlines. Fair play. But on this occasion, the Elon Musk run electric car maker found itself on the receiving end of some unwelcome attention at the Chinese Shanghai Auto Show. Taking place this week, a woman – protesting at her treatment by Tesla following an accident – invaded … Continued
The surge in battery electric vehicles shows every sign of continuing. And why not? Despite the reduction in the Plug-in Car Grant last month, conditions still remain highly positive for fleet take up of electric vehicles (EVs). The SMMT’s latest figures for March show that EV registrations have ballooned by 88% year on year, taking … Continued
Wow! That was unexpected. I mean, just after Chancellor Rishi Sunak’s Budget had seemingly left business motoring to get on with the electrification of fleets all by itself, the Government fires this broadside. The broadside that changed the parameters to the Plug-in Car Grant for electric vehicles (EVs). It’s not going to hole the ship, … Continued
The appeal of a company car remains highly attractive in any employee benefit package. In a survey conducted by vehicle leasing and mobility solutions provider Arval for its annual Mobility Observatory report, fewer than 20% of drivers surveyed said they would be willing to give up their company car for an alternative mobility solution. And … Continued
People. If you don’t have the right people you don’t have the right business. You can have smart business plans with appropriate sales, marketing and support functions. But if the execution of those plans by the people in the business is laboured, lacks motivation, then those smart, sparkling ideas become tarnished through uncaring service, undone … Continued
Cash versus company car remains a key debating point in fleet policy for many companies. Is it financially better to offer employees a cash alternative so they can sort out a car personally? Or is it better for both parties – employer (duty of care) and employee (employment benefit) – to keep them within the … Continued
Despite lockdowns and business interruptions caused by the coronavirus pandemic, Fleet Alliance continues to be a great place to work, listing in the UK’s Best Places to Work for the ninth successive year. The company features in the category for medium sized businesses (51-250 employees), the Glasgow based fleet management and finance business rising 13 … Continued
So. Welcome to 2021. What’s on your agenda this year? I can’t deny that we are moving through a difficult, troubling and complex time with a virus that is impacting all our lives, both on a personal and a business level. But with a vaccination programme starting to roll out, there is great hope that … Continued