ADVERTORIAL: If you need capital, look to your fleet

Need capital? Look to your fleet. Obtaining and managing a line of credit to finance your core business operation is a major challenge for most small and medium-sized enterprises (SMEs).

 

As a business owner you may not know you are sitting on a reliable source of capital – your vehicle fleet.

Leasing is an effective way to unlock capital tied up in your fleet, as well as offering potential balance sheet and tax benefits.

There are a number of fleet financing options available, each offering benefits depending on the needs of your company. Choices range from credit lines and bank loans through to operating leases.

The following table outlines three vehicle finance options popular with SMEs.

Comparing vehicle finance choices

 

Ownership

 

Deposit

Balloon payment

Tax benefits

Details

Operating Lease (FMOL)

At the end of the term you can return the vehicle or extend the lease

Not required

Not required

Rental payments are fully tax deductable

  • Improve your balance sheet position by freeing up the capital in your fleet assets
  • No exposure to car value movements
  • All vehicle running costs are included in the monthly charge, saving you time and administration
  • GST is not required upfront; it is part of the monthly payment and fully claimable

Hire Purchase

 

You own the vehicle once the final balloon payment is made

Yes

Yes

Interest and depreciation is tax deductable only if the vehicle is used for business purposes

 

  • Risk of the resale value decreasing
  • Fixed balloon payment
  • Reduction of the monthly payment requires deposit

 

Chattel Mortgage

 

You take ownership of the vehicle upon delivery

Yes

Yes

Potential tax benefits if a vehicle is used to generate taxable income

  • The asset is displayed on the balance sheet
  • GST payable upfront on the purchase price
  • Discharge and release fees apply
  • Risk of the car value decreasing

 

Boosting your balance sheet with an operating lease

Incorporating a vehicle and fleet management under an operating lease arrangement allows your business to keep vehicles off the balance sheet and free up vital capital for core business activity.

For example under a FleetPartners’ fully maintained operating lease (FMOL), a new Toyota Camry Altitse 2.4L auto Sedan could cost $766* including GST per month with full scheduled servicing, replacement tyres, 24-hours roadside assist, registration, purchase stamp duty and fuel management.

Fleet management tailored to your needs

Outsourcing the management of your fleet reduces administration costs and time, improves management of your costs and removes residual and maintenance risk. Another important advantage is the purchasing power FleetPartners can provide an SME or small fleet business.

A unique feature of the FleetPartners’ FMOL is our free OneCall service. With just one telephone call you can arrange maintenance and servicing for your vehicle, with valet pick up and delivery^, plus the convenience of SMS and email reminders.

Specialists in small fleet management

At FleetPartners we understand the unique challenges facing SMEs. As part of our commitment to building genuine partnerships with our SME customers, FleetPartners has an exclusive small fleet team. This team is dedicated to servicing the SME sector and developing a close relationship with each customer to ensure unparalleled management for their fleet.

To find out more about how a fully maintained operating lease from FleetPartners can help your business call the dedicated sales line on 13 17 39 or visit www.fleetpartners.com.au.

*All figures are for a FMOL including 4 replacement tyres, fuelcard, scheduled servicing and registration renewals. All figures are based on general fleet pricing or the equivalent for Toyota for a VIC delivery as at 01/04/11. No current bonuses have been allowed for in the figures. Metallic paint is the only accessory included. Calculations have been based on an average lease term 48 months & 100,000km.

^OneCall services are subject to availability and location

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