Release the value in your fleet

Release the value in your fleet

Posted by

Robert Wentworth-James

May 2021

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.


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