Starting a new business is, without a doubt, both an exciting and challenging time!
It’s exciting because it gives new business owners the chance to offer something new, such as a credit car. And it’s challenging because there are often many “hoops” to jump through.
And it’s challenging because there are often many “hoops” to jump through.
There’s no denying that one of the things startups find hard is to secure credit and finance. Sure, there are many “bedroom businesses” that can get started on a shoestring. But, what happens if you need to borrow some money to make things happen?
Using personal savings isn’t always an option for those that build a new business. Some people reading this may think they’re doomed before they’ve even begun. But, the good news is that it’s still possible to get the financial help you need.
One case in point is company vehicles. Keep reading to learn why it’s still possible to get a company car, even as a new startup business:
Why it makes sense to get a company car
There will be a need to visit customers and also meet with suppliers on a regular basis. Sure, one could just use public transport. But, it’s not always possible to rely on it, especially in rural areas!
As you can imagine, there will always be a need for company vehicles.
The only trouble is; new startups can seldom afford to buy cars outright. In those cases, it makes more sense to lease the vehicles they need instead.
But, there can often be a stumbling block for new firms that want to lease cars. As with people, companies are individual entities. They also have credit files that give others an insight into their creditworthiness. New firms have no track record of borrowing money, and so are often deemed a high or “bad credit” risk.
Fear not, because it’s still possible to lease a car if you’re a new startup business! There are plenty of bad credit car leasing specialists out there that can help. The best bit: they often make available attractive interest rates!
Is leasing a credit car better than getting a loan?
In a word, yes. There are many reasons why leasing one or more company vehicles is better than taking out a bank loan.
For a start, leases are often easier to arrange than loans. That’s because the borrowing is all secured against the car. With a loan, banks and other lenders have no backup plans in case you can’t pay them back. Of course, with a leased car, they can just take the car off you if you don’t pay for it!
There are also cash flow benefits to car leasing. When a business takes out a loan, it usually has to make high repayments. Car leases are cheaper because the amount to borrow is less. Remember that leasing means you are paying for the use of a car, not to own it outright.
That, in itself, offers another benefit. Companies can “keep” a car for around three years and upgrade to a newer model at the end of the lease period. If they owned the car, they would have to keep using it or try to sell it, often for a loss.