Are all electric cars automatic?

Are all electric cars automatic? The short answer is ....yes!   Most electric cars are automatic, and likely will be in the future. Electric cars don't... Read More

To charge or not to charge?

To charge or not to charge? One of the main barriers to people switching (pardon the pun) from petrol to electric cars is the confusion that exists around charging points.... Read More

The need for speed: getting your business wheels turning

The need for speed: getting your business wheels turning Triumph and adversity often go hand-in-hand, and this certainly applies to business start-ups and the rollercoaster that is the economy. No surpris... Read More

London’s Ultra Low Emission Zone (ULEZ) expanding in October 2021 – is your vehicle compliant?  🚙

London’s Ultra Low Emission Zone (ULEZ) expanding in October 2021 – is your vehicle compliant?  🚙 From 25 October 2021, the existing central London Ultra Low Emission Zone (ULEZ) will expand to create a single larger zone up to, but not includin... Read More

Do you read beyond the headline? (Clue: you might want to this time!)

Do you read beyond the headline? (Clue: you might want to this time!) Ah, you’re here so it seems you do. That could be good news if you’re in the market to offer your employees more benefits, more specifi... Read More

Power to the people: why you don’t need to worry about a lack of electric vehicle charging connectors

Power to the people: why you don’t need to worry about a lack of electric vehicle charging connectors For many, the biggest barrier to switching from a petrol to an electric vehicle is the fear of ‘running out of charge’. It’s unde... Read More

What is the difference between a hybrid and a plug-in hybrid vehicle?

What is the difference between a hybrid and a plug-in hybrid vehicle? With the growth in enquiries and demand for alternative fuelled cars, a common question we get is, what is the difference between hybrid and plug-i... Read More

Why leasing our electric cars is a win-win-win

Why leasing our electric cars is a win-win-win Leasing an electric car from littlegreencarleasing.com is a great way to take your first step into the world of electric vehicles. In fact, we doub... Read More

Lease the Audi E-TRON GT - read our review round-up

Lease the Audi E-TRON GT - read our review round-up The Audi E-TRON GT is the flagship all electric car for the German manufacturer and it is quite simply luxury personified - Auto Express report tha... Read More

The Citroen E-C4 - Car Leasing Review

The Citroen E-C4 - Car Leasing Review The Citroen E-C4 is an affordable all electric coupe SUV. It's official all electric range is reported as 217 miles but real-wor... Read More

The need for speed: getting your business wheels turning

Share

17/08/2021

The need for speed: getting your business wheels turning

Triumph and adversity often go hand-in-hand, and this certainly applies to business start-ups and the rollercoaster that is the economy. No surprise then, that the appetite for start up businesses hasn’t been dampened by the ongoing pandemic.

Talking of new business challenges, what about your vehicle? Many people will be ploughing all their funding into forming their company and might easily forget that they need transport. It’s not a great time to need more cash and, unfortunately, the money-lenders often agree.

Business startups can easily find themselves in a chicken and egg situation when it comes to procuring a car: financing simply isn’t available if you haven’t got some sort of credit history as many businesses unfortunately fail within their first couple of years.

Three things to try

However, all is not lost as there are a couple of avenues to try:

Firstly, a guarantee can be offered by a Director of the business to pay the outstanding debt should the business fail. This might be a good option if the business you are creating is reliant on having a dedicated vehicle but do note it only applies to limited companies.

Secondly, being able to produce even a small amount of extra information can make a difference to the underwriters so if the business has been running even a few months and has bank statements to prove this, they can be very helpful in increasing your chances of finance. Equally, signed orders or contracts which demonstrate the business will be able to afford repayments might also help.

Thirdly, you might have traded in a different guise, perhaps you were a one man band and you are now a Limited Company, the underwriters will consider this so make sure you share your business story fully. 

Other things to consider

It’s possible that any solution you manage to uncover may come with higher-than-average interest rates, which is the financing company’s way of mitigating the extra risk they are taking on. But, if you’re savvy with your choice of car, you can save money too. Drivers will be charged a benefit-in-kind tax which is cheaper than using your own car and, if you can find a model with no CO2 emissions, you won’t be charged at all. Finally, if you’re VAT registered, you’ll be able to claim back the VAT on your monthly payment, providing the vehicle is used solely for business purposes.

Finding and procuring your first company vehicle is like anything else in the world of business startups: a bit of a time thief and it comes hand-in-hand with a hefty paper trail too. But, it’s worth putting in the background work to ensure you get what you want and need at the earliest opportunity if it means you can get your business on the road.