Release Capital in your Business with Operating Vehicle Leases
More and more businesses that want to free up their balance sheet and access alternate forms of funding are using operating leases for their vehicle fleet.
Under a fully maintained operating lease, a company leases a vehicle for an agreed term. At the end of the term, the car is returned, with the company having no exposure to the residual value of the vehicle.
Under the terms of an operating lease, the company makes a monthly payment for the duration of the lease that covers the rental costs for the vehicle, servicing, maintenance and registration.
Free up the balance sheet
“Operating leases are an extremely cost effective way of running a fleet of vehicles,” says Andy Mulcaster, CEO, SG Fleet Australia Pty Limited.
“Leasing rather than owning a fleet of vehicles significantly frees up a company’s balance sheet, allowing the company to put precious capital resources toward developing the business and its revenue streams. It’s really an alternate source of funding, which is something many companies are looking for in the current economic climate,” he says.
Leasing vehicles under operating leases also delivers operational benefits to the business, effectively allowing it to outsource management and running of the fleet to a specialist fleet management business such as sgfleet.
Working with a specialist fleet management company such as sgfleet gives clients exposure to economies of scale and cost benefits that can only be accessed by outsourcing fleet needs to a large industry player.
For commercial fleets, the advantages of using operating leases are unparalleled. sgfleet’s access to long-term data about many different vehicles puts its fleet managers in a unique position to be able to provide technical support to clients with commercial fleets, including making recommendations about the best vehicles to suit specific purposes, providing advice on financing options and maintenance and registration of vehicles throughout their life.
Great analytical tools
sgfleet’s superior reporting and analytical tools, including its proprietary software Fleet Intelligence, give companies sophisticated data about vehicle use, which allows them to understand and control business expenses, as well as reduce risk to the business.
For example, the system can identify drivers with a high number of traffic infringements, giving the business the opportunity to counsel these employees to reduce the number of infringements and the likelihood of motor accidents.
sgfleet’s data intelligence systems can also generate information about the way the fleet is managed to help drive efficiencies in the fleet and cut down fuel costs.
“In a business climate in which efficiencies and reduced business costs differentiate the good players from the ordinary ones, it just makes so much sense to use operating leases for your vehicle fleet,” says Andy Mulcaster.
“Our business is growing at a rapid rate; recently new clients have added 1000 vehicles to our fleet. This growth indicates the market appreciates the value operating leases deliver to a business and we expect an increasing number of Australian companies to use operating leases for their fleet in the future,” he says.
To find out more about how operating leases can free up your balance sheet and cut business costs contact sgfleet today on 1300 786 680.
For more information contact:
Carolyn Taylor
(02) 9494 1000
ctaylor@sgfleet.com
< back to news