With less money to lend, Banks and Finance companies are proving to be more difficult to borrow money from and when considering a major expenditure such as a new company vehicle why would any business use valuable capital to buy a depreciating asset. We can provide you with fixed monthly costs and no depreciation risk. Contract hire, which provides off balance sheet funding, improves a company's gearing and can improve liquidity. In addition a VAT registered business can reclaim 50% of the VAT on the finance rental and 100% of the maintenance rental on a new car. In comparison no VAT is recoverable
when a new car is purchased using cash, cheque or hire purchase.

The Benefits
1. Vehicles are supplied at a fixed monthly cost which will help with budgeting.
2. The agreement can include maintenance which reduces administration and helps with 'Duty Of Care' legislation.
3. Off Balance sheet funding improves gearing and opens up additional funding routes. This will help improve cash flow.
4. There are significant VAT and tax savings.
5. The company removes residual value risk in the future.
6. Advice on low Co2 vehicles helping with both the drivers Benefit In Kind and the company's Class 1 contributions.
7. Access to improved manufacturer discounts on purchase and maintenance.
While the 'Credit Crunch' brings many obstacles and challenges to your business, it also provides the opportunity for you to review your current business arrangements, helping you save money and reducing risk in the future.