How Does Fleet Financing Work in 2022? (Truck Finance, vehicle leasing, and more)

fleet financing

There are very few businesses that do not require a vehicle of some description in order to operate. These may vary from delivery cars for small items or services to light-duty trucks, cargo trucks, refrigerated trucks, trailers, and even boats or ships. Some companies may need many vehicles and need to consider leasing their fleet for their business. These companies may include people who operate car rental companies or taxi services, logistics and construction companies, and even people in service-based industries like plumbers, electricians, or telecommunications specialists. It is important to choose the right finance company when choosing the leasing option for your truck financing, and Equipment Finance offers an excellent fleet financing service.

What Does Fleet Financing Mean?

Truck finance would be a lease agreement between a business and a fleet/vehicle financing company, like Equipment Finance. A fleet generally includes two or more vehicles, so whether you are a small start-up company requiring just two vehicles or a larger one leasing vehicles on a bigger scale, you can choose to finance your fleet.

The company doing the leasing pays to use the fleet of vehicles for an agreed period of time or finances a fleet of vehicles over the contract period. They pay the finance company a monthly fee for truck leasing as per the terms of their contract. Depending on the needs of your fleet, you can tailor your truck finance contract. Speaking to Equipment Finance will give you peace of mind knowing that they will make the contract work for your unique business and financial situation.

Advantages of Leasing Your Fleet

Every business aims to keep running costs low, and vehicles are not only expensive to purchase, but they are also high in maintenance. The costs associated with licensing and maintenance could mean the difference between a company making a profit and a loss, which is why financing a fleet is the sensible thing to do. The leasing company manages the maintenance and repairs on the vehicles or includes these costs in your contract. This means that fleet financing is less expensive than buying as it doesn’t require upfront capital for the initial purchases. You as the lessee can enjoy your fleet of vehicles without incurring additional costs or liability, allowing you to use your cash flow to operate and grow your business.

There are also significant tax and VAT advantages to financing a fleet of vehicles. The monthly leasing expenses are considered an equipment rental expense and can be written off as a business expense.

Asking the Right Questions

Making the decision to finance your fleet with Equipment Finance is the first step. Next, you need to ask yourself questions like: How many vehicles do I need in my fleet? What will my vehicles be used for, and what types of vehicles do I need? Do I have any special requirements for my vehicles e.g., refrigeration, storage?

There are many more questions you may want to ask. The specialists at Equipment Finance have the answers to put your mind at rest about financing your fleet and helping you reach your business goals.