YourCarChoice has an established reputation for exceeding clients expectations and delivering in circumstances when other companies could not.
Young businesses come across many obstacles in their initial stages. One such barrier for startups is just how to finance a vehicle – something that may be essential to how you earn.
But it’s not always a simple road to track… Whether you’re a first-time business owner or have made an old venture new again, many lenders can turn their noses up at your request.
Leasing is a great method of obtaining the vehicles you need, yet it may rely on credit that the business (due to its relative youth) doesn’t really have. Here, we explain How To Build A Fleet On Credit As A Startup.
Avoid traditional lending partners
The vast majority of ‘big’ lenders won’t accept your finance application. Why? Because you cannot play by the rules they enforce; the business doesn’t have enough proof of a credit history.
They may want to view the accounts from a freshly incorporated brand – one that won’t have done much trading so far. How can you lend on credit that is unproven? In this instance, they can turn to a director’s credit rating, which (though unrelated to what the business is borrowing) could be less than ideal. Sole traders are penalised too, as their previous accounts mean little after making the switch to a limited company.
Specialised lenders are a far better option. Your Car Choice connects you to them, opening the doors to credit criteria that treats startups on their own terms. Joining us is the first step.
Budget as carefully as possible
These lenders will ask you to provide some documentation – credit is still relevant, but they also want to see forecasts, current investments, and your annual cash flow.
This data will guide the lease you’re hoping to secure. Is it for two, three, or twenty vehicles? What kind of insurance goes with them? Can you afford it?
We’ll help you ascertain the details. Ultimately, however, your chances of leasing success are down to how well you know your business, and whether your income projections are realistic.
Hone in on the lease you want
Vehicle leasing isn’t confined to one or two formats.. A Business Contract Hire, for instance, lets you reclaim 50% of the VAT on your monthly payments with a private mileage limit. It’s different from a Business Contract Purchase, which results in owning the vehicle after a certain time has passed. It depends what you need, the affordability, and the extent to which the vehicles add value to your business.
See how it works to get a clearer view of what we’re talking about. With our assistance, you’ll figure out the best course of action. Steady leases will build your credit score, so future finance may not be as tricky once you’ve kept up with the payment plan.
Startups are more at risk than anyone of encountering a financial stop sign. We’ll lay a path to your fleet, no matter how young your business may be. Contact us today for a consultation.View All
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