The Challenge for New Limited Companies: Accessing Vehicle Finance

Starting a new business is a challenging endeavour, and one of the significant hurdles faced by many is securing vehicle finance. Traditional lenders, including banks, dealerships, and leasing companies, often hesitate to provide finance to new limited companies until they have an established credit history and have submitted their first set of accounts. This can be especially problematic for growing businesses that need vehicles for staff, deliveries, or to expand their operations.

How First Flexi Lease Can Help New Businesses

At First Flexi Lease, we understand that new businesses shouldn’t have to wait to access the vehicles they need. Regardless of how long you’ve been trading, you can apply to lease a car or van with us. We offer tailored services to meet the unique needs of new businesses, providing flexible leasing options that help overcome financial constraints or a lack of credit history.

Flexible Leasing Options:

• Short Lease Terms: Our leasing options include 6 or 12-month terms, offering flexibility without a long-term commitment. After this period, you have the option to swap the vehicle for a new one or explore finance options to purchase it.
• Maintenance-Free Leasing: With our short-term lease options, most vehicles are swapped out before major servicing is required, road tax is due, or tyres need replacing. This saves your business money by avoiding these costs.
• Regular Upgrades: Every 6 or 12 months, you can change vehicles, ensuring your business always operates with the latest models. Maintenance and servicing are included in the regular swaps.
• Potential to Buy After 12 Months: Once you’ve established some trading history and submitted your first set of accounts, we can assist you in transitioning to vehicle ownership. If you’ve leased a car or van that you’re satisfied with, we can help arrange the finance to buy it outright.

Tax Benefits of Leasing for New Businesses

Leasing a vehicle through your business not only eases cash flow but also offers tax advantages.

• VAT Savings: If the vehicle is used exclusively for business, you can claim 100% of the VAT on your lease payments. For mixed-use vehicles (personal and business), you can claim 50% of the VAT.
• BIK (Benefit-In-Kind) Tax Savings: Leasing can reduce the amount of BIK tax payable, particularly if you choose low-emission models, further reducing business expenses.
• Maintenance VAT Reclaim: Even if the car is used partly for personal purposes, you can still reclaim VAT on maintenance packages.

Are You Eligible for Finance?

Unlike traditional lenders, First Flexi Lease offers new businesses the opportunity to lease a vehicle, regardless of credit history or length of trading. To apply for vehicle leasing, you need to provide:

• Basic Business Details: Company name, registration number, and annual revenue.
• Director’s Information: Full name, date of birth, and marital status.
• Business Bank Details: Name of the bank, account number, and sort code.

At First Flexi Lease, we are committed to supporting new businesses by providing flexible and accessible vehicle leasing options. Whether you’re just starting out or looking to expand, we’re here to help you get on the road to success.

The Challenge for New Limited Companies: Accessing Vehicle Finance

Starting a new business is an exciting yet challenging journey. Among the various hurdles that entrepreneurs face, securing vehicle finance is one of the most significant. For many new limited companies, reliable transportation is crucial for daily operations, whether it’s for delivering products, meeting clients, or expanding their reach. However, traditional lenders, including banks, dealerships, and leasing companies, often hesitate to offer finance to new businesses. This is primarily due to the lack of an established credit history or the absence of the first set of accounts. Without access to necessary vehicles, businesses can face delays in growth, missed opportunities, and operational inefficiencies.

How First Flexi Lease Can Help New Businesses

At First Flexi Lease, we recognize that new businesses need support to thrive, not barriers. We believe that the age of your business shouldn’t determine your ability to access the vehicles you need. That’s why we offer flexible and accessible vehicle leasing options tailored specifically to meet the needs of new businesses. Regardless of how long you’ve been trading, our services are designed to help you overcome financial constraints, enabling you to lease cars or vans without the need for an established credit history.

Flexible Leasing Options for Growing Businesses

We understand that every business is unique, and so are its needs. That’s why we provide a range of flexible leasing options that give you the freedom to choose what works best for your business. Here’s how we can help:

• Short Lease Terms: Our leasing options include 6 or 12-month terms, offering flexibility without the burden of a long-term commitment. This is ideal for new businesses that are still finding their footing and prefer to avoid being locked into lengthy contracts. After the initial period, you have the option to swap the vehicle for a new one or explore finance options to purchase it.
• Maintenance-Free Leasing: With our short-term lease options, most vehicles are exchanged before major servicing is required, road tax is due, or tyres need replacing. This not only saves your business money but also frees you from the hassle of managing vehicle maintenance, allowing you to focus on growing your business.
• Regular Upgrades: Technology and safety features in vehicles are advancing rapidly. Every 6 or 12 months, you can upgrade to the latest models, ensuring that your business always operates with the most up-to-date and reliable vehicles. Maintenance and servicing are included in the regular swaps, giving you peace of mind.
• Potential to Buy After 12 Months: Once your business has established a trading history and submitted its first set of accounts, you may decide to transition from leasing to ownership. If you’ve leased a vehicle that suits your needs perfectly, we can assist you in arranging the finance to buy it outright. This seamless transition is designed to support your long-term business growth.

Tax Benefits of Leasing for New Businesses

Leasing a vehicle through your business not only helps with cash flow management but also offers significant tax advantages. Here’s how leasing with First Flexi Lease can benefit your bottom line:

• VAT Savings: If the vehicle is used exclusively for business purposes, you can reclaim 100% of the VAT on your lease payments. For vehicles that are used for both business and personal purposes, you can still reclaim 50% of the VAT, making it a cost-effective option.
• Benefit-In-Kind (BIK) Tax Savings: Leasing can reduce the amount of BIK tax payable, particularly if you choose low-emission models. This can significantly lower your business expenses, making it easier to manage your finances.
• Maintenance VAT Reclaim: Even if the vehicle is partly used for personal purposes, you can still reclaim VAT on maintenance packages. This further reduces the overall cost of leasing a vehicle.

Are You Eligible for Finance?

At First Flexi Lease, we aim to make vehicle leasing accessible for new businesses, regardless of their credit history or length of trading. To apply for a lease with us, you’ll need to provide the following:

• Basic Business Details: This includes your company name, registration number, and annual revenue.
• Director’s Information: We’ll need the full name, date of birth, and marital status of the director applying for the lease.
• Business Bank Details: Please provide the name of your bank, along with your account number and sort code.

Our application process is straightforward and designed with new businesses in mind. We are committed to helping you get on the road quickly and efficiently so you can focus on what matters most—growing your business.

Explore our financing solutions to help your new business access the vehicles it needs today!

Frequently Asked Questions (FAQs)

1. Can I lease a vehicle if my business has been trading for less than a year? Yes, you can! At First Flexi Lease, we specialize in providing vehicle leasing options for new businesses, even if you’ve been trading for less than a year. We understand the challenges new businesses face and are here to help you get the vehicles you need.

2. What happens at the end of the 6 or 12-month lease? At the end of your lease term, you have several options. You can choose to swap your vehicle for a new one, explore finance options to purchase the vehicle outright, or simply return the vehicle with no further obligation.

3. Are there any additional costs I should be aware of? Our leasing options are designed to be as transparent as possible. The cost of maintenance and servicing is included in the lease, so you won’t have to worry about unexpected expenses. However, it’s important to review your lease agreement for any potential fees related to excessive wear and tear or exceeding mileage limits.

4. Can I lease multiple vehicles for my business? Absolutely! We offer the flexibility to lease multiple vehicles, depending on your business needs. Whether you require a single van for deliveries or a fleet of cars for your sales team, we can tailor a leasing package that suits your requirements.

5. What if I have a poor credit history? We understand that new businesses may not have an extensive credit history, or they might have faced financial challenges in the past. At First Flexi Lease, we assess each application individually and are often able to provide leasing options regardless of your credit history.