BUSINESS FINANCE LEASE
Whilst each of the van finance solutions we provide are similar in name, every one delivers a very different set of advantages for commercial vehicle owners or those looking to purchase the very first van in their fleet. Confidence and clarity however come as standard with our Business Finance Lease option as they do with our other finance options.
Our Business Finance Lease customers can enjoy fixed monthly rental repayments courtesy of this popular finance product. At the end of the term you even have the chance to make profit on the commercial vehicle that you have come to know with an opportunity to trade in the vehicle or pay a final rental/balloon figure. If the final sale price is above this predetermined balloon payment, you get to keep the profit, which is great news for those looking to boost their bottom line further.
There are many more benefits to using our Business Finance Lease option to fund your new van purchase. In addition to enjoying fixed monthly rental payments for a period of up to 60 months, all payments you make are 100% tax deductible. As we mentioned previously you also have the potential to keep using your vehicle after the primary lease period comes to an end. Unlike many van finance products, there’s no strict mileage or damage penalties to contend with either. Please note that excess mileage and damage will affect the value of the vehicle at the end.
Can’t afford to settle the final balloon payment at the end of your term to continue your van’s use? You can apply to refinance the balloon payment and hang onto your van for a longer term with the same fixed monthly repayment option you’re familiar with. At the other end of the spectrum, those wanting to settle their agreement early can do so cost effectively and easily.
Is it right for me?
The predetermined balloon payment is great news if the used vehicle market works in your favour when the time comes to settle your finance. But can be disheartening if the sale price happens to be less than your balloon payment at the end of your term. Your outstanding monthly repayments are also classed as a liability on your balance sheets, whilst the costs of operating, servicing and maintaining your vehicle are also not included.
The Business Finance Lease product is great for those looking for better flexibility come the end of their contract however. If you can’t confidently stick to mileage limits or your vehicle is at risk of wear and tear, with Business Finance Lease you don’t get penalised for vehicle damage or excess mileage, although the final value of the vehicle will be affected. Business owners and sole traders who aren’t VAT registered will also enjoy this finance product with VAT already paid on your vehicle not due upfront as an added extra.
For further information about this van finance product or any other of our flexible finance options, please contact our team direct.