Securing a lease vehicle for new start businesses
The growth of a new business or start-up doesn’t happen overnight and comes with its own challenges. You’ll want to spend time and money where it matters most, which is where leasing with Synergy comes in.
We’re here to support new business growth through leasing, helping source vehicles that are reliable, efficient, and affordable. Our team have worked with countless new businesses, helping to source and fund vehicles for over 15 years.
Securing a business lease vehicle removes the hassle of maintenance and ownership, allowing startup businesses to focus on other key areas of their development. Whether you’re in need of your first company car, or a fleet of vans for employees to use, you could benefit from leasing.
We spoke to Will Voisey, Managing Director here at Synergy, about securing a lease as a new business and what should be considered.
Why can it be challenging for new start businesses to lease a vehicle?
“For a new business, it can sometimes be more difficult to secure a lease. It’s often the case that mainstream finance providers and banks require two years trading history and one or two sets of accounts on Companies’ House. This is to reduce their risk of payments not being made over the term of the lease.
However, Synergy works with certain funders who, depending on the type of business or industry, may consider start-up business vehicle leasing. They can ask for 3 months bank statements, a set of management accounts, if available, and/or a director’s guarantee. A director’s guarantee means the director concerned will take over the responsibility to pay for the vehicle if monthly payments aren’t made.
Synergy’s team of business and fleet specialists can help secure the right finance agreement for your business. They’ll chat through your requirements and understand the nature of your business.”
What are the options for new start businesses?
“Our business leasing deals are a popular option for start-up businesses and a great way to choose a vehicle that meets your specific needs. They also offer tax and accounting benefits and remove the hassle of ownership.
Another option is fleet leasing, which allows new businesses to add multiple cars and vans to their operations. This is open to companies of all sizes, so don’t think you need to be running lots of vehicles to qualify. If you don’t like the commitment of standard agreements, why not consider our short-term leasing options. This can offer an easy and flexible solution for start-up businesses who might not meet the requirements of business leasing.”
Why does leasing EVs work well for new start businesses?
“ Leasing an electric car can benefit a start-up in a number of different ways. They are often cheaper to run and can future-proof a new business from the outset. Running an electric vehicle can instantly improve brand image too and demonstrate an eco-conscious approach.
Electric vehicles also have the lowest Benefit-in-Kind (BIK) Tax rate, currently set at 2% until 2025. This means company car drivers, who would normally pay tax on this non-cash benefit, are charged less when leasing an all-electric vehicle.”
