Posted by Mary Tinsley on Mon, Dec 10, 2018 @ 10:51 AM

3 reasons your small business should consider van hire in 2019

why-flexible-solutions-are-the-future-of-commercial-van-hire

BVRLA’s Industry outlook report claimed that a new generation of smaller business customers are being lured by the cash flow and risk management benefits of van hire.

With the New Year bringing new challenges and opportunities, business owners need to be flexible and ready to adapt. And the same goes for their fleet.

In this blog we’ll highlight the three main reasons you should consider making commercial van hire one of your New Year’s resolutions:


Healthy cash flow

There’s a noticeable trend of businesses moving away from vehicle ownership and choosing to take advantage of van hire, which enables them to keep more of their cash in the bank. After all, vehicles are expensive assets to own and operate and when ‘cash is king’ it makes sense for businesses to take advantage of the more flexible, less risky alternatives to vehicle ownership.

10 essential questions to ask a potential LCV hire provider >

When it comes to acquiring new vehicles for you fleet, you’ll need to consider how much capital you have available and, if it is locked up in buying a new fleet, how will that affect your cash flow?

Buying a van outright for your business will appear as an asset on your balance sheet. Although this means you can qualify for some capital allowances from the tax man, it also means that you’ll takes on risk in the form of uncertain residual values and maintenance costs.

While it really depends on the type of vehicle you have, research has found that vehicle hire can be significantly cheaper than purchasing a vehicle outright. Large capital costs are replaced with a fixed outgoing fee, and depreciating assets are taken off your hands as vehicles can be returned at the end of a hire term.

Reliable vehicles

It’s common for many business fleets to leave vehicles unused over the festive period as employees enjoy some well-earned downtime. Unfortunately, this can lead to batteries going flat and January’s productivity being affected. Last January, RAC patrols dealt with over 10,000 breakdowns, with flat batteries accounting for more than a quarter of call-outs.

To start the new year on the right track, it’s important to account for potential maintenance and breakdown cover.

If you choose to purchase your vehicles, you will be burdened with the responsibility for servicing, maintenance and repair. Luckily, if you opt for vehicle hire then your provider should deal with all of this for you.

Much of this stress can be avoided if fleet managers have access to all-inclusive vehicle maintenance, repairs and breakdown recovery. Most commercial van hire contracts now include these services as standards, helping to minimise vehicle downtime and keeping customers on schedule. As a result, fleet managers can get on with doing what they do best.

Flexibility

In order to support future growth, small business owners must be able to develop their vehicle fleet as working conditions evolve.

Short term van hire can pose the perfect solution for fleets with fluctuating schedules. Many small businesses see their balance sheet change dramatically over the course of a year, as a result of changing levels of demand.

With the safety and environmental changes affecting the industry, as well as the increase in the number of frameworks being awarded, many fleets are now seeking flexible vehicle hire to help avoid upfront costs for new vehicles and technologies, meet changing demands and access experienced and expert fleet management services.

Plus, the freedom to change your vehicles as and when needed means that the onus and financial burden to get vans compliant will fall to your vehicle hire firm instead.

Find your perfect business solution

Now you’ve considered the benefits of van hire, when it comes to choosing a vehicle hire provider it’s important to ask the right questions to identify a product that truly serves your business.

For example: What kind of funding option should you choose? What about fleet maintenance and servicing packages? And do you need a range of vehicles or bespoke modifications? Our guide will help you assess the commercial vehicle hire options you’re likely to encounter, and arm you with the questions you need to find the perfect fit for you. Download it for free below:

10_question_to_ask_a_potential_LCV_fleet_hire_provider_CTA 

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Topics: Commercial vehicle hire

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