Owning a car is a logical step for most businesses. It will save you a fortune on public transport fees and increase the professionalism of your business when you turn up to client or customer meetings.
But how do you afford to finance a new company car?
Head to your high street bank
The obvious place for you to begin your search for funding is at your high street bank or the place that approved your business loan (if you took one out). These people are likely to have a detailed knowledge of your business and will understand its specific needs and circumstances.
It’s possible that they may extend your current loan to cover the cost of a car, but it’s far from guaranteed. In addition, they also may not offer you the best interest rate because you’re already tied into their deal. As a result, it’s wise to approach them first but then use their offer as a guide as you shop around.
Explore alternate loan options
High street banks aren’t your only option, and nowadays specialist loans are available online through companies such as Everyday Loans.
Specialists like this are an ideal solution if you’ve either spent all of your current bank loan, don’t wish to extend it or have bad credit. They’ll loan you the money for the car and you can pay them back in monthly payments that can be factored into your business model.
One of the other pros about online companies and loans is that you can often get a decision in minutes.
Lease through your business
If you can’t afford to buy a new car for your business through either of the above options then remember that leasing is also an option. Leasing through a business is often far cheaper than a Personal Contract Purchase (PCP) deal, and you’re entitled to do it as an SME owner.
When you buy a car through a company scheme such as a contract hire scheme then you usually pay a lower monthly headline figure than through a PCP agreement. If you’re paying this back over a period of 3-5 years (as most do) then this will make a substantial difference to the overall amount you repay. It’s a great alternative to buying outright.
To conclude, there are a number of ways that you can finance your company car and, because numerous options exist, you’re better off shopping around to find the best deal for you and your business.