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Intro to Limited Company Van Leasing
Making the correct financial decision is essential if you're looking to expand your limited company. Of those decisions you will make, buying or leasing a commercial vehicle will be one of the most crucial. Most companies tend to opt for leasing vehicles. How do you know it's the right time to get the van, and how will it help your business grow?
"Leasing a van can help you to grow your limited company."
When is the Right Time to Lease a Company Van?
Even though having a company van is ideal for smooth business operations - you should only think about getting one when you know you can utilise it to the fullest.
Here are some of the signs your business is ready to lease a commercial vehicle:
- - A base of regular and repeat customers with defined orders
- - When the organisation has become profitable
- - There is a constant demand
- - Outgrowing the currently available resources
- - Increased customer demands, with longer operational hours
- - A growing team with expanded operational processes
"How do I know when to lease a van for my business?"
Should You Buy or Lease a Company Van?
Whether to buy or lease a company van remains a tough choice among company executives. Making a choice is even more challenging in a limited company with different directors looking to contribute to the decision. Both options come with pros and cons to consider before settling on the best choice.
Leasing often tends to be the best option for limited companies. When buying a van, the business can end up spending a substantial amount of money all in one go; potentially damaging cash flow and curbing future investments. On the other hand, leasing allows you to spread the cost over a fixed period.
"Leasing can often be a better option for your business than buying."
Choosing to lease a van provides your business with access to top quality, high-spec vehicles. By not spending a large amount of cash buying the van outright, you can save funds for business expansion and other critical operational costs. Additionally, leasing a van provides you with a manufacturer's warranty which covers the maintenance and repair costs. Having these costs and works covered and out of your hands means you free up your time and waste less time worrying about overheads and other expensive costs involved with maintenance. The above options would likely not be available if you were to buy the van outright.
Additionally, the ease and thus increasing popularity of leasing a van has led to a rise in the variety of options for limited company van finance. Love Finance works with a broad panel of lenders who are available to provide you with a wide variety of options; you have the choice of vehicles from a range of dealers or private sellers.
"Leasing a company vehicle can provide you with more options."
How Does Leasing a Van Help Your Company's Growth?
Investing in a van for your limited company is crucial in helping you grow in various ways. A company van gives you a professional look. Whether you are a service, courier, or any other form of business - a company van gives you the status that helps you sell yourself. A company van is a quantifiable way of showing that you are doing well. It's also a sign of longevity, which helps build trust in prospective clients.
Leasing a van is great for your company's finances. Buying a vehicle means challenging most of your money to the payments, impacting your expansion ability. At the same time, you have to look into recurrent costs like maintenance. However, by leasing a van through a limited company, you allow yourself to use your money in expanding the business.
"Leasing a van through a limited company can expand your business."
Hopefully, you can rely on the van to improve your sales. From time to time, you will have your sales team meet prospective clients face to face, which can be costly without a company's transportation means. However, the sales team can conveniently move around with the company van. It comes with convenience and saves the company money while improving the business.
What Do You Need To Lease a Van for Your Company?
Compared to sole traders, leasing a van as a limited company is more straightforward. While individual leasing focuses on a single person's financial standing, the limited company van finance looks into the company's finances and those of its directors.
"Leasing a van through a limited company is more straightforward."
Some of the details to provide when applying for an ltd company van finance include:
- - Company registration number
- - Company registered address
- - Company bank statements
- - Annual net income
- - The name and other personal details of all the directors
A vehicle leasing company relies on the above details to determine how suitable your company is for business van finance. You might also have to undergo a car lease credit check to determine your credit score for the lease. Some leasing companies might also require additional information like years of operation depending on individual terms.
"You may be subject to a credit check when leasing a vehicle."
Limited Company Van Leasing at Love Finance
Now that you have established how company van leasing helps company growth and the needed details to get started, the next step is to look for a financial partner. And you can never go wrong with Love Finance.
We always want to support your company's growth, so we offer bespoke financial solutions like competitive limited company van finance. We offer you direct contact with us without any intermediaries, which means no hidden charges. At the same time, we have invested in top automation processes for faster processing of funding requests.