Maximise Business Cash Flow With Pick-Up Truck Leasing |
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Mon Bennigton
16 January 2013
With little resources at their disposal, the first important lesson for most start-ups is allocating what little they have accordingly. That may simply mean having staff perform a variety of duties or perhaps considering pick-up truck leasing instead of purchasing a new vehicle outright.
When mobility is an important factor for the operation of your business, specifically in delivering products or transporting personnel, leasing vehicles is the better option for small business owners. Aside from the variety of vehicles available-from used pick-up trucks to a brand new Nissan Navara-leasing offers numerous benefits.
For one, you won't need to put out a huge amount of cash for a deposit like you would when purchasing a new vehicle. Similarly, you won't need to put out a large amount of money for the monthly installment. With vehicle leasing, you will pay a considerably smaller amount. Typically, when a leasing period has been agreed upon (somewhere between one to five years), the business can pay as little as the equivalent of three monthly payments, and pay the balance over the agreed period of time. These benefits mean that having a vehicle for your business won't be too much of a drain on your cash flow. You can reap the same benefits as owning your car without the hefty price tag, freeing some of your cash for investments in other areas of your business like equipment.
Another significant benefit of pick-up truck leasing is that business owners will not have to worry about the depreciation of the vehicle. Just like other types of business assets, vehicles depreciate over time. With leasing, this problem is virtually eliminated. Related to this, leasing eliminates the problems associated with selling used pick-up trucks like haggling with traders or other interested buyers. At the end of the lease period, the vehicle is simply returned to the leasing company and you can simply lease out a newer model.
Perhaps the greatest benefit of vehicle leasing is the significant tax benefits it offers. Leasing is particularly preferred by business owners because the cost is fully deductible. Value added tax can be spread with the monthly payments instead of paying the full amount in one instance. If the vehicle lease is VAT-registered, one can claim the outlay back or if the vehicle is not VAT-registered, the business owners can simply offset the amount from their own tax.
The key to owning a business is balancing profit with expenditure. Balancing essential needs with the non-essential and finding alternative means for performing a specific task is crucial in determining success or failure.