A new line of credit

The beauty about car leasing – whether on contract hire (CH), personal contract hire (PCH) or even a PCP personal contract purchase (not strictly a lease, but performs a similar function) – is that you have access to an additional line of credit.

You don’t tie up bank loans and overdrafts that your business will invariably need at a time when cashflow is tight and working capital at a premium. And with regular monthly rental payments, the costs can be budgeted.

What about short-term car leasing?

Of course, during such economic turmoil, long-term car leasing might not be the right option for your business.

But that shouldn’t hinder your company’s sales aspirations. There are plenty of opportunities to opt for short-term leasing over, say, three or six months. While the rental will be slightly higher than a longer-term lease, it remains a cost-effective way to manage trading expenses in turbulent economic conditions.

“Using rental – and not just daily rental – but long-term rental can provide a good, flexible alternative to leasing,” confirms Neil McCrossan, chief executive office, Nexus Vehicle Rental. “But the key is to find a supplier who can match your business needs.

“Make sure they can provide vehicles when and where you need them, wherever staff might be in the country. That might seem obvious but it’s important to think about the extent of coverage you might need,” continues McCrossan.