How can SMEs benefit from financial leasing?
What is financial leasing and how does it work?
Financial lease is a form of financing that allows you to drive a company car without having to put down a large sum of money right away. It works like this: you choose a vehicle, pay a fixed monthly amount and at the end of the term, you are the full owner of the car. This is different from operating lease, where you have to return the vehicle to the leasing company after the lease period.
For SMEs, financial lease many advantages. It allows you to keep capital free for other investments because you don't have to incur a big expense all at once. Moreover, the monthly payments are fixed, making it easy for you to budget. Another advantage is that you have immediate economic ownership of the vehicle. This means you can put the vehicle on the balance sheet and deduct depreciation and interest for tax purposes.
Why is financial leasing attractive for SMEs?
For many SMEs, it is important to maintain liquidity. Financial leasing makes this possible because you don't have to make a large one-off investment. This means you can use your capital for other important business activities, such as marketing or hiring staff. Moreover, you benefit from tax advantages because the interest is tax deductible.
Another plus is that you get access to modern commercial vehicles without worrying about high purchase costs. This helps you renew your fleet and ensure that you always have reliable and efficient transport. Financial lease also offers the flexibility to purchase multiple vehicles, which is ideal for growing companies looking to expand their fleet.
How does financial lease compare to operating lease?
When comparing financial lease with operating lease, there are some key differences. Financial lease allows you to become the economic owner of the vehicle, meaning that the vehicle appears as an asset on your balance sheet. This offers tax advantages, such as the ability to deduct depreciation and interest. At the end of the lease period, you become full owner of the vehicle.
Operating lease, on the other hand, works more like a rental contract. You pay a monthly fee to use the vehicle, but you never become the owner. At the end of the lease period, you have to return the vehicle. This can be attractive for companies that don't want vehicle ownership or don't want to worry about maintenance and resale value.
What factors should SMEs consider when choosing a leasing option?
When choosing the right leasing option, there are several factors SMEs should consider. First, cost: financial leasing can be more advantageous in the long run, mainly because of the tax benefits. But operating lease offers predictability in costs, as maintenance is often included.
In addition, the term is an important factor. The longer the term, the lower the monthly cost, but this can mean being tied to a contract for longer. Flexibility is also crucial; if you expect your fleet to grow or shrink in the future, a flexible lease option may be a better fit. Finally, you need to consider the impact on your balance sheet, as financial leases are recorded as debt, while operating leases can be off-balance sheet.
What role does Van den Hurk Bedrijfswagens play in the leasing process?
At Van den Hurk Bedrijfswagens, we understand that choosing the right leasing option is an important decision for any business. We offer comprehensive support throughout the leasing process. Whether it is selecting the right vehicle, customising the commercial vehicle with accessories, or drawing up a tailor-made lease contract, we are here to help.
Our years of experience and customer-oriented approach ensure that you always get the best solution for your specific needs. We offer flexible financing options and quick approval, so you can get on the road with your new commercial vehicle quickly and without hassle. Feel free to visit us in Helmond and we will discuss the options together and make sure you are happy to hit the road with your new commercial vehicle.
