How to start a leasing company

So, what exactly is a rental and leasing business? Rental and leasing businesses offer products, or assets, to customers on a temporary basis. Airbnb is a perfect example. It is famous for brokering deals so that homeowners can rent out their spare rooms to short-term visitors. Car rental firms, as another example, hire out cars to travellers, or locals, who are in need of a vehicle. Interested? Here’s how to start up a rental and leasing business:

However, rental and leasing businesses have the potential to go far beyond motor vehicles and housing. Most products you can think of can be turned into profitable items that could be leased out temporarily. This could be:

  • Vintage crockery to rent out for weddings and parties
  • Photography equipment that professionals can hire for photo shoots
  • Cleaning and decorating equipment that homeowners may want to use on a short-term basis

There is a real possibility of building a successful rental or leasing business from nearly anything.

Legal requirements for setting up companies

In order to set up a private limited company, you must come up with a name for your business, and register it with Companies House. To register, you must have at least one director and shareholder, and a range of legal documents that can be put together by a business lawyer.

You must also have sufficient and relevant insurance coverage for your business. This will include insurance to cover the items you are renting out. This means that if the photographer drops your lighting rig and it shatters, you can replace it. It also includes public liability insurance. So if the cleaning equipment you rent out damages some property, you can cover your company’s liability.

If you are unsure about the insurance your company would require, speak to a specialist insurance broker who can advise you about what you need coverage for and how to get it in an affordable way.

Types of leasing and renting

If you are entering into the rental and leasing sector, you need to understand the different types of leases and rentals that are available.

Contract hire and lease hire

With these hiring options, you hire a vehicle, or a piece of equipment, for a specified (contracted) length of time. The lessee (the person who owns the equipment) allows the lessor (the person doing the leasing) the right to use a piece of equipment during that specified period.

Hire purchase

With hire purchase, the item being leased is paid for over a period of time in a number of instalments. Unlike leasing, the person making the payments owns the vehicle or equipment at the end of the period of payment.

From the point of view of the leasing and hiring business, these two main options are quite different. The company should consider which fits its business model most effectively.

For small businesses, a hire purchase agreement can be lucrative if the overall cost of the item being bought is inflated over the payments being made. However, with contract and lease hire, the business gets the equipment back at the end of the period of the agreement. This allows it to be rented out again to another customer. This is the usual model of leasing and hiring companies, as hire purchase companies are more about sales than rental.

What to consider when setting up a leasing or rental business

Assess interest

It’s important to assess interest from your potential audience before setting up your company so that you can accurately identify whether or not you have a profitable business idea. If you want to rent out baking equipment, for example, you might struggle. Most people who are interested in baking have their own.

Set up a website

You will also need a decent website to not only showcase what you do. This can also let customers book their rentals online. Good management software is essential and will allow you to accurately track exactly where each piece of equipment, or vehicle, is at any one time. For expensive items, you may want to consider attaching GPS or other tracking devices.

Look at your price points

Also, look at the price points of your competitors, too. If you don’t have any competitors, consider whether that’s because you’re an innovative genius, or whether it’s that nobody else has been able to make your business idea work. That shouldn’t automatically put you off, but preparation, planning and a realistic outlook will be crucial.

What makes you different?

Finally, if you do have competitors locally, identify an aspect of your business that differentiates you from them. Note that this doesn’t always have to be the price. If you offer additional services, or better conditions, you will not have to engage in a fight for the lowest-cost rental, and end up pricing yourself out of business.

If you are considering setting up your own rental and leasing business, but want a bit more advice about where to start, take a look at our help centre or get in touch with our customer service team.

For further information head to our help centre.

Vehicle leasing is the long term rental (or use) of a motor vehicle for a specified period for an amount agreed upon for the rental. It is generally offered by dealers as an alternative to vehicle purchase but is widely used by companies as a method of acquiring (or using) vehicles for businesses, without the usual cash expenditures. The main difference in a rental agreement lies in the fact that after the main term (usually 2, 3 or 4 years), the vehicle must be returned to the car leasing company or purchased for the residual value.

Vehicle leasing offers benefits to both buyers and sellers. For the buyer, lease payments are considerably smaller as compared to payments on a car loan. Sales taxes are due only on each monthly payment and not immediately on the total purchase price, as in the case of a loan. Once you’re ready to start your car rental or leasing business (which often go together), follow these steps to make sure your business complies with the law, and avoid wasting time and money as your business grows. So you’re ready to start your car rental or car leasing business? Follow the steps below and you’ll have a great chance at succeeding.

STEP 1: Plan your business

A clear plan is essential to succeed as an entrepreneur. Some important topics to consider are:

  • What are the initial costs?
  • What is your target market?
  • How long will it take for you to break even?
  • How will you name your company?

Choosing the right name is very important. We recommend that you check if the business name you choose is available as a Web domain and secure it quickly so no one else can take it.

STEP 2: Form a legal entity

Establishing a legal entity such as an LLC saves you from being personally liable if your security company is sued. Remember to use a registered agent service to protect your privacy and stay compliant.

STEP 3: Register for taxes

Before you can open a business, you will need to register for various federal and national taxes.

STEP 4: Open a professional bank account

Recording your various expenses and sources of revenue is essential to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies the filing of your annual tax return.

STEP 5: Configuring Enterprise Accounting

Recording your various expenses and sources of revenue is essential to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies the filing of your annual tax return.

STEP 6: Obtain the necessary permits and licenses

The lack of necessary permits and licenses can result in heavy fines or even the closure of your business.

STEP 7: Subscribe business insurance

Insurance is highly recommended to all business owners. If you hire employees, workplace accident insurance may be a legal requirement in your state.

STEP 8: Define your brand

Your brand is what your business stands for, as well as how your business is perceived by the public. A strong brand will help your company stand out from the competition.

STEP 9: Establish your web presence

A professional website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new customers.

Want to set up your own rental or leasing business? Learn more about where you can go to get business help.

The BVRLA provides some basic support around what you need to consider if you are planning to set up a rental or lease operation. We are unable to provide any detailed business advice other than what is stated below.

Legal Implications

There is no statutory requirement setting vehicle standards other than general product liability legislation and general consumer protection legislation such as the Consumer Rights Act which govern what terms may be used and will be upheld in contracts entered into with consumers.

There are no special legal requirements for setting up a rental company beyond the normal legal requirements when starting up any other type of business.

Statutory Requirements

There is no statutory regulation or licensing scheme for the rental industry other than the nature of a hire agreement may require your company to be registered with the Financial Conduct Authority.

For further information visit the Financial Conduct Authority (FCA) website, or contact them on their firm helpline on 0845 606 9966 or 0300 500 0597.

Buying a franchisee/licence

You may decide that the best way of entering into the industry is by way of a franchise agreement where vehicles systems and financing support are available. Companies who offer franchising arrangements in the industry are set out below.

Europcar UK Ltd
Europcar House, Aldenham Road, Watford, Herts, WD2 2LX
tel: 01923 811000

United Rental Group Ltd
Durrant House, Holywell Street, Chesterfield, Derbyshire, S41 7SJ
tel: 01246 282000

Practical Car & Van Rental Ltd
21-23 Little Broom Street, Camp Hill, Birmingham, West Midlands, B12 0EU
tel: 0121 772 8599

Vehicle Rental Services Ltd
The Court Yard, 18 Station Parade, Beaconsfield, Bucks HP9 2PB
tel: 01494 678949

Hertz UK Ltd
Hertz House, 11 Vine Street, Uxbridge, Middlesex, UB8 1QE
tel: 01895 6270

Green Motion
Aspen Farm, Sheep Lane, Woburn, MK17 9HD
tel: 03338884000

Herd Hire
Rivermead House, Hamm Moor Lane, Addlestone, KT15 2SF
tel: 01372 747333

Easy Lease (UK) Ltd
Virage Point, 4th floor Virage Suite, Cannock, Staffordshire, WS11 ONH
tel: 0845 313 2256

Specialist insurance companies

The following companies specialise in rental company insurance or brokering and can advise on risk issues and the level of cover required for self drive vehicle hire insurance.

  • Arthur J Gallagher Insurance Brokers – tel: 0208 018 7455
  • MS Automotive (London) Ltd – tel: 0207 480 5461
  • Rival Insurance – tel: 0344 8000 688
  • Sentinel Insurance Solutions Ltd – tel: 01189 311008
  • Towergate Insurance – 0844 892 1434

Specialist business administration and computer software companies

Jaama Ltd – tel: 0844 8484 333
Nexus Business Solutions (RentMan) – tel: 0870 787 2211
Prohire Software Ltd – tel: 01795 434000
Coastr – tel: 0800 6895 687

Membership of the BVRLA

The BVRLA is the trade association representing and regulating the rental and leasing industry more information on the benefits of members is available here.

The BVRLA’s Codes of Conduct sets out minimum standards for its sectors of membership including: rental, rental broker, leasing and fleet management and commercial vehicle and minibus operation.

We’ve collected some good advice that is ideal for aspiring entrepreneurs who plan on opening an auto leasing business. Read these tips before you start!

Thinking about opening an auto leasing business? We tell you what you need to know to get started.

Nuances of the Independent Auto Leasing Business

Auto leasing has become an acceptable financing alternative for many consumer and commercial vehicle buyers. It’s also grown to encompass a diverse mix of industry practices ranging from fleet vehicle leasing to consumer auto leases to short-term car rentals.

Many startup auto leasing businesses focus on fleet and short-term leasing simply because the major auto manufacturers dominate the consumer leasing sector with their own lease programs. The right startup can still turn a profit in consumer leasing, it’s just that success can be more elusive in this market segment, especially for first-time auto leasing entrepreneurs who aren’t equipped to compete against the automakers’ in-house leasing plans.

Auto Leasing Capital Requirements

It’s important for startup auto leasing business owners to understand that an auto lease is basically a financing arrangement. Your auto leasing company will have the same fundamental characteristics and requirements as a startup financing company, including the need for access to a large quantity of capital.

Unless you have won the lottery or already have access to vast sums of capital, you’ll need to acquire investors and/or financing to get your auto lease business off the ground floor. From the outset, your planning process must emphasize not only the startup capital requirements, but the sources of capital your company will access to provide leasing services on a go-forward basis.

Profit Optimization in Auto Leasing

In any business, profitability is a simple equation — it comes down to maximizing the amount of revenue generated and minimizing the costs you incur in the delivery of products or services. As an independent auto lease company, the market will limit lease pricing. So to optimize your startup’s profitability, you’ll need to focus on two areas: (1) Increasing the number of vehicles leased, and (2) reducing your costs.

Aggressive marketing and advertising campaigns through both traditional and online channels can drive commercial and consumer prospects to your startup, but only to the extent that they are performed in both a strategic and tactical manner. To reduce costs, you’ll need to develop relationships with auto manufacturers’ fleet managers to take advantage of discounted fleet pricing, particularly for your inventory of short-term leased vehicles.

Best Auto Leasing Company Business Plans

An effective business plan is your auto leasing business’s stepping stone to profitability and long-term success.

Although there are a lot of tasks screaming for your attention, cutting corners on your business plan can be a precursor to disaster. Why? Because there are a multitude of reasons why your company can’t succeed without a sound business plan.

From a business ownership perspective, that makes business planning your first priority – and not a task that can be assigned to the back burner.

Don’t Overlook Competitors

Prior to launching an auto leasing business in your area, it’s worthwhile to see what the competition looks like. Use the link below to find competitors in your city. After clicking on the link, type in your city, state and zip code to get a list of auto leasing businesses near you.

It’s important to be aware of what the competition is doing. Take the time to visit the competition to properly assess their strengths and weaknesses.

A Good Source of Advice

Once you’ve finished assessing the competion, be sure to have a conversation with someone who is in the business. It’s very unlikely that the local competition will talk to you. What’s in it for them?

Fortunately, somebody who runs an auto leasing business in another town can be a great learning resource for you, given that you don’t compete with them in their area. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. It can take a while to find an entrepreneur who is willing to talk, but it’s well worth the effort.

How would you find an auto leasing business entrepreneur that lives outside of your area?

We can help. Follow the link below, try a few city/state combos or zipcodes, and then start calling!

Business Brokerage for Auto Leasing Business Entrepreneurs

Business owners are decision makers. And the first decision you’ll need to make is between an auto leasing business startup and an acquisition. In most cases, there are compelling financial and practical reasons buying an existing auto leasing business.

Although you could navigate a business acquisition on your own, most prospective auto leasing business owners enlist the services of a business broker.

Top quality brokers with an industry track record understand the nuances of auto leasing business acquisitions and are equipped to make your transition to auto leasing business ownership as easy as possible.

Don’t Rule Out Franchising

If you want to minimize your chances of failing, it’s a good idea to look into the pros and cons of franchising.

If you are thinking about opening an auto leasing business, you would be wise to investigate whether franchise opportunities in your space might be the right move for you.

The link below gives you access to our franchise directory so you can see if there’s a franchise opportunity for you. You might even find something that points you in a completely different direction.

Related Articles on Starting a Company

These additional resources regarding starting a business may be of interest to you.

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Additional Resources for Entrepreneurs

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What Is a Fleet Lease Vehicle?

Becoming an auto leasing company is a very long process that requires applying for necessary state licenses, establishing the business and building a client base. Auto leasing companies provide consumer and commercial leasing to a range of clients, including retail purchasers of new and used cars, corporate fleets and short-term renters. Most private leasing companies focus on fleet management and short-term leasing, as the captive leasing companies owned by auto manufacturers have a near-monopoly on new car leases.

Write a business plan. Before starting the lengthy application for a dealership or leasing license in your state, write a short business plan and make sure that your leasing company could be sustainable. As a leasing company, your organization will be responsible for purchasing, registering and keeping all vehicles on the road legally. You must also find a niche in your local market. For example, an auto leasing company focusing on tow trucks and delivery trucks may have more success than one that offers passenger car leasing, as this market is heavily saturated. If necessary, speak with your bank or credit union to check on financing options, as purchasing vehicles to be leased is a very expensive requirement.

Find a place of business. In most areas, a business address must be established before a dealership or leasing application is reviewed. If you currently operate a new or used car dealership, you will be able to use your current address. However, if you are starting a leasing company as a new venture, you may need to rent or purchase an appropriate facility before completing your department of motor vehicles application.

Apply for licensure in your state. Check with your local department of motor vehicles to see if there are any special requirements to establish a leasing company in your state. The license application process can take weeks or months, and in some areas you must have a business address for your leasing company before filing the application.

Purchase vehicles. If you plan to offer vehicles for short-term leases, a fleet of vehicles must be purchased before operations start. Check with fleet managers and Internet sales managers at local dealerships to get the best deals. Let them know that you are a growing fleet account, so you can help them make up for low profits by purchasing a large number of cars and trucks. Remember that you will need to pay registration fees and renew plates on these vehicles on an annual basis.

Set leasing rates. Once you have an inventory of vehicles, you can set lease rates. Whether your goal is to sell short- or long-term leases, you must set your rates so they are competitive. You must also consider your leasing company’s bottom line. The rates must be high enough so that they cover each vehicle’s depreciation, allowing you to sell vehicles as used and make a profit when they are no longer needed in your fleet.

How to start a leasing company

luxury car – model toy car image by alma_sacra from Fotolia.com

How to Start a Property Investment Company

Leasing is an alternative option for many people who are contemplating buying a new home, car or furniture. While not as popular as owning, leasing represents 27 percent of new car acquisitions for car dealerships according to a 2007 report released by Consumer Reports. Renting and leasing homes is also common, as more than 30 percent of adults in the U.S. choose this over purchasing their own home, according to 2009 data from the U.S. Census Bureau. To earn a profit from people’s desire to lease, you need to learn how to start a leasing company.

Develop a business plan. Determine what items you will lease as part of your company. Conduct an analysis of current leasing options available in your community as well as the demand for leased vehicles, homes and furniture to learn what niche of the market offers the best chance for profit. Write a business plan that includes your findings and details how you plan to capitalize on them to make a profit. Include information about marketing, financing and staffing the business in your plan as well.

Obtain funding. Get a copy of your credit report before applying for funding for your company to check for any errors that may exist on your report. Take a copy of your business plan with you when applying for a business loan at a local bank or credit union, since most financial institutions review these before approving the funding to start a company. Check with the U.S. Small Business Administration to learn if you qualify for small business loans that are guaranteed or offer low-interest financing to help you start your leasing company.

Register your business. Obtain a business license to do business as a leasing company at your physical location by visiting your local city hall or county government building. Complete the form from the Internal Revenue Service website to get an Employer Identification Number (EIN), which registers your business on the federal level. Learn what sales tax regulations apply to your leasing company, and register with the state and local department of revenue to collect and pay any sales tax required. Purchase liability and property insurance to protect your business in case someone is hurt or your property is damaged. Make it a requirement of your leasing contract for the person with the lease to carry their own insurance on the property as well.

Seek out a facility. Find a commercial facility capable of housing your company based on the specific items you plan to lease. For example, leasing furniture requires a large indoor space where you can put furniture on display for customers to browse while a small office is acceptable for a leasing company focused on rental homes and apartments. Browse websites such as LoopNet or Craigslist for properties, or contact a real estate agent who specializes in commercial property to assist you. Ensure that once you have your facility, obtain property and liability insurance to protect the facility as well as your business.

Establish contracts. Employ a lawyer to draft a leasing contract that you can use when clients lease property from your company. Ensure that the contract contains clauses that release your company from liability in case someone is injured or killed when in, on or using the property. Determine what requirements you have for a person to be able to lease from your company, and check that this is written into the contract. This often includes a deposit, a good credit history and references.

Hire staff. Find people willing to serve as employees for your leasing company. Seek out individuals who have good customer service skills and sales experience. Consider hiring a bookkeeper or accountant to manage your finances, payroll, taxes and other financial aspects of your business.

Promote your business. Advertise the leased items you provide using mass communication channels such as radio, television and newspaper. Create a website specifically for your business that shows pictures of the items you have available for lease. Consider special deals during specific times of the year when demand is higher for the products you provide. For example, summer is often a time to run specials on vehicle leases when more people are looking to get a new vehicle. Network with local organizations and individuals who work with people who have short-term needs for housing and transportation, since they are more likely to lease than buy.

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How to start a leasing company

Related

  • Staff Turnover Examples
  • How to Become a Staffing Agency
  • How to Start an Employee Assistance Program
  • How to Start Your Own Dental Practice
  • What Are the Major Components of a Staff Development Program?

An employee leasing company as defined by “Entrepreneur” comprises, “Workers who are officially employed by a professional employer organization, which is responsible for overseeing all [job] functions, but who actually perform all work for your company.” Unlike staffing agencies that provide temporary to permanent positions, small business employee leasing companies hire job candidates and then “rent” them out to other companies for a fee.

Register your business. Visit an online legal document creation services, such as Legal Docs or Legal Zoom and write your Articles of Incorporation. File them with the state and register your business’ name with the state or county. Registering your Doing Business As or fictitious name is done at the county or state level. For example in the state of Texas you must register your employee leasing company’s name within the county it is based, but in Florida fictitious name registration is done at the state level.

Consult your state and county licensing boards to see if you need a license or permit to operate your employee leasing company. For instance, in Texas, you need a license to operate an employee leasing company. The Texas Department of Licensing and Regulation states, “A staff leasing company (also called a Professional Employer Organization or PEO) is regulated by the department through Chapter 91 of the Texas Labor Code (staff leasing law).”

Locate professional office space. Ideal office space will be about 650 to 850 square feet and have a small reception area, an office for you, a small conference room or access to a conference room and a testing area for new job candidates to determine their skill levels.

Create a niche in your serviceable area. To stand out from your competition, find and develop a niche market to cater. Your employee leasing business needs more than advertising in print, radio and television media, it needs to be a distinct “go-to” small business for specific job candidates, such as law offices, medical offices, engineering firms and financial services firms. Pick a specialty and develop a reputation for providing quality employees to that specific industry.

Build and grow a business network. Attend job and career fairs in your area to meet both job seekers and employers. Pass out business cards to everyone you come in contact, and be ready to discuss how your company operates. Have information pamphlets printed to hand out to employers as well as job seekers.

Find experienced, competent job candidates. According to Hoover Web Design, “Your task will be to find and attract top people and to maintain complete files on them. What kind of jobs they specialize in, their attitudes about work, and when or how often they’re willing to work.” Buy testing software that test computer skills and create your own questionnaire that tests an applicant’s knowledge about the industry in which your employee leasing business specializes.

  • PowerHomeBiz.com: Starting A Staffing Agency
  • Hoover Web Design: How To Start Your Own Temporary Help Service
  • “Start Your Own Staffing Service”; Krista Turner; 2004
  • Texas Department of Licensing and Regulation: Staff Leasing Services Frequently Asked Questions
  • “Entrepreneur”: Leased Employees

Owen Richason grew up working in his family’s small contracting business. He later became an outplacement consultant, then a retail business consultant. Richason is a former personal finance and business writer for “Tampa Bay Business and Financier.” He now writes for various publications, websites and blogs.

Financing a startup business is no longer a difficult task! While many banks maybe shying away from startup business equipment leasing, LEASEFUNDERS.COM SPECIALIZES in equipment leasing for start up business!

  • Easy Equipment Lease Application Process
  • No time in business required!
  • Flexible Credit Requirements!

Our Startup Equipment Leasing Program

Minimum lease amount of $10,000

Time In Business: No time in business required. If you have more than 3 years time in business please Click Here for our established business leasing program

Are you an equipment vendor/ salesperson needing help in getting your startup businesses financed? Click here for our vendor program!

Documentation Needed

  • Equipment Lease Application or apply online using our SECURED application form
  • Invoice or Details concerning equipment
  • 3 months bank statements from the business account OR the personal account that will be used to establish the business.

Credit Requirements

  • Must have an established personal credit history. If you have no credit of your own, you can use a co-signer
  • All bankruptcies must be at least 3 years discharged.

Get Approved Fast!

Start Up leasing is a SPECIALIZED lease program. Here are some tips that will help you obtain your equipment lease quickly.

Please Refrain From submitting your equipment lease request to numerous equipment leasing companies. Why? Many equipment leasing companies do not provide equipment leasing for companies with less than 2 years in business and each time you submit to a leasing company they will pull your credit. Thus lowering your credit score.

Do Submit any information (such as business plans, executive summaries, resumes, etc.) when you submit your equipment lease application. While it is not required, we have found that it will on occasion turn a NO into a YES!

Do Submit full financial information. Put your best foot forward!

Do Tell us if you have any credit problems. Submit a letter of explanation with your equipment lease application to help us make our credit decision.

Asset finance solutions, tailored to meet the needs of each individual business

Shire offers a broad range of asset finance solutions, tailored to meet the needs of each individual business that we support – including both established businesses and new startups. With a dedicated account management team and in-house underwriting, we can guide you to find the best available asset finance solution or business equipment leasing option.

What is Asset Finance?

Asset finance refers to different types of business finance agreements that allow you to acquire business assets by spreading the cost over an agreed period of a time, through monthly/quarterly payments. Asset finance can be used to acquire equipment, machinery and much more. The main benefit of asset finance is that it allows you to access new equipment affordably, without the strain on cash flow that can arise when buying outright.

Types of Asset Finance

There are a number of different types of asset finance solutions available, each with their distinct pros and cons depending on your business requirements.

Finance Lease

Finance Lease

A finance lease is a popular finance solution for businesses who need assets or equipment. If your business requires equipment but doesn’t have the funds available to pay for it all up front, then a financial lease may be the ideal asset finance solution for you. However, many large companies that have the cash available also opt for a business finance lease opposed to outright purchases, recognising the benefits of retaining cash and making payments that are unaffected by interest rates.

What is a Business Finance Lease?

With a finance lease, we buy the equipment you need and lease it to you over an agreed period of time. You find an asset from the supplier/s of your choice and we purchase it, renting it back to you in exchange for the agreed monthly or quarterly payments. Shire Leasing owns title of the equipment but you can use it as if it were your own asset. Leasing is often a suitable option for acquiring equipment that is likely to depreciate in value.

The Benefits of a Lease Financing

  • No major upfront costs – for just a small outlay you can use assets immediately
  • Flexible repayment structure – rental payments can be tailored to match your cash flow
  • Tax advantages – finance lease rentals can be 100% tax deductible against profits
  • Interest rates are fixed for the duration of the contract, making it a cost-effective and budget-friendly financing choice

Due to the flexibility of a financial lease, it is a particularly effective finance solution for SMEs. Get in touch with Shire Leasing today to find out more.

Hire Purchase (HP)

Hire Purchase

Hire purchase is a popular business finance solution for those who commercial vehicles or equipment, but do not have the available funds to buy them up front. Hire purchase is a great commercial asset finance solution if you want to have ownership of the asset at the end of your agreement and is sometimes referred to as a lease purchase.

What is Hire Purchase?

A business hire purchase agreement is similar to a finance lease and is one of the most popular finance solutions on the market. Commonly used for car finance, hire purchase enables you to spread the cost of your asset over a period of time (the agreed duration of the lease) and then have the option to purchase ownership title at the end of the agreement for a final nominal fee.

When you choose to finance an asset via hire purchase, an initial deposit is required and the VAT must be paid upfront. Once this is paid, you then make monthly/quarterly payments for a fixed period. Once you have come to the end of the hire purchase agreement, you can then become the legal owner of the asset through a nominal transfer of ownership fee at the end of the contract. There is also a possibility of becoming the owner of the asset earlier than agreed by making a lump-sum payment to settle the remainder of the finance.

Hire Purchase Benefits

  • Ownership – the asset can be yours at the end of the agreement
  • Fixed interest – with both the interest rate and payment amounts fixed and agreed from the outset, you are able to budget more effectively
  • Tax advantages – you may be able to capitalise the asset in your accounts and claim full capital allowances

If you are looking to spread the cost of new equipment, hire purchase can be a particularly beneficial asset finance solution for your business. Get in touch with Shire Leasing today to find out more.

Sale and Leaseback

Sale and Leaseback

Shire Leasing offer sale and leaseback as a business asset finance solution for equipment and assets your company has recently purchased, such as gym equipment, catering equipment and much more. Once the asset has been purchased from you, we will offer it back to you on a finance lease agreement. If you’re looking for a quick way to inject cash and working capital into your business, then sale and leaseback could be for you.

What is Sale and Leaseback?

A sale and leaseback agreement is when a business chooses to sell their equipment to Shire Leasing, often for the full invoice value paid. Shire Leasing then takes on ownership of the assets, and they are leased back to you over an agreed period of time.

The Benefits of Sale and Leaseback

  • 100% cash injection – the cash released through our purchase goes directly into your business, providing you with valuable working capital
  • Enhances your cash flow – simplify your budgeting through fixed rate rental payments
  • Reduces risk – sale and leaseback reduces the risk for your organisation. By selling your assets, you have passed the ownership of the assets to Shire Leasing. Therefore, you will not incur any losses should the value depreciate over time.

A sale and leaseback contract can be an effective solution for your SME should you need to increase your working capital while also allowing you to continue using the equipment critical to your business. Get in touch with us to find out more.

At Drivrz Financial, our sophisticated technology makes it easy to compare leasing products, calculate payments, and prepare paperwork for approvals. Simply enter the vehicle information into our automated system, and get an instant comparison of our available leasing products.

How to start a leasing company

We pay faster than other auto finance companies. Drivrz Financial provides funding within 48 hours from receipt of your completed leasing contract. This means you get paid quickly, and can close out your deals daily.

How to start a leasing company

With Drivrz Financial’s Auto Financing’s Automated Decisioning, you’ll know in seconds whether a customer is approved for an auto lease. This means you can close deals faster, and customers can drive away happier.

We’re driving change in Auto Leasing

Experience drivrz financial.

At drivrz financial,
we make leasing easy for customers
and effortless for dealers.

How to start a leasing company

Our pre-populated leasing contracts, automated decisioning technology, fast funding solutions, automated payment systems, and exceptional service set us apart from other auto finance companies.

How to start a leasing company

Our pre-populated leasing contracts, automated decisioning technology, fast funding solutions, automated payment systems, and exceptional service set us apart from other auto finance companies.

How to start a leasing company

Our pre-populated leasing contracts, automated decisioning technology, fast funding solutions, automated payment systems, and exceptional service set us apart from other auto finance companies.

Why Work with Us?

Exceptional Service.

As the company that services your customers’ leases, we know that our service and reputation is a reflection on you. We will continue to provide exceptional service throughout the life cycle of their lease.

Lower Payments. Better Vehicle.

Customers enjoy the benefits of driving a high quality, newer- model vehicle, with a lower payment. With 70% of leasing customers being repeat customers, they are more likely to return to your dealership when the lease term ends.

Automated Decisioning.

With Drivrz Financials Automated Decisioning technology, you will know in seconds whether a customer is approved for an auto lease. This means you can close deals faster, and your customers can drive away happier.

Click. Print. Sign. Done.

At Drivrz Financial, our sophisticated technology makes it easy to compare leasing products, calculate payments and complete lease contracts in just minutes so customers can get behind the wheel faster. No complicated worksheets. Easy.

Fast Funding

We pay our dealers faster than other auto finance companies. Drivrz Financial provides funding within 48 hours from receipt of your completed leasing contract. This means you get paid quickly and can close out your deals daily.

Provide More Customer Options.

There is a reason why more drivers today are choosing leasing instead of purchasing. Customers can get more car for their money, a newer car every few years, no long-term commitments and reduced upside down loans.

For Drivers

Transforming the
Driving Experience

At drivrz financial, we make it easy
to drive the car you want .

If you enjoy driving a new or different vehicle every three to four years, but don’t want to make expensive payments or waste money on a depreciating asset, we have the solution. Our affordable new and used vehicle leases cost less than a car payment, with no long-term commitment required. It’s simple to send payments and manage your lease using our online payment system – and if you need help, our friendly staff is always available to assist you.

For Dealers

Driving Sales and
Service for Dealerships

Looking to drive revenue, sales and service
at your dealership? Look no further.

We make it easy to turn today’s customer into tomorrow’s repeat client. We offer affordable, innovative leasing products to make your customers happy, along with first-class service to keep them coming back. Best of all, we make it easy to click, print and complete leasing agreements fast with an innovative dealer portal and automated decisioning. Not all auto leasing companies are alike.

Dealer Testimonials

On behalf of our dealership, Drivrz Financial is an amazing program, we have had nothing but a great experience. The customer service and staff is always ready to assist with quick response time. Ultimately, Drivrz Financial makes us want to do business with them because they help maximize our deals and put more cars on the road which therefore has lead us to be more successful.

General Sales Manager, Ocean Automotive Group

Doral, FL June 10, 2021

Drivrz Financial has expanded my business immensely. Not only financially but exposure to more car buyers. Right now is the perfect climate for used car leasing. I’m protecting my clients from negative equity while also providing them lower monthly payments. With the Drivrz Financial lease program I’m creating used car customer retention to ensure my future growth. I consider relationships to be a priority for success and I’m proud to have a partnership with Drivrz Financial.

Partner, Brooklyn VW

Brooklyn, NY June 8, 2021

I just want to take a moment to share what an exceptional company Drivrz Financial truly is. The Drivrz Financial program has helped us maximize profits and make sales. Their staff is understanding and experienced and willing to help us succeed!

General Sales Manager, Universal City Nissan

Los Angeles, CA June 8, 2021

  • How to start a leasing company
  • How to start a leasing company
  • How to start a leasing company
  • How to start a leasing company
  • How to start a leasing company
  • How to start a leasing company

Experience drivrz financial

Underwriting Hours (1-800-563-6872)

Mon-Fri 8:00AM – 9:00PM CT

Sat 9:00AM – 9:00PM CT

Sun 2:00PM – 7:00PM CT

Servicing Hours (1-800-439-0741)

Mon-Thu 8:00AM – 11:00PM ET

Fri 8:00AM – 9:00PM ET

Sat 9:00AM – 5:30PM ET

14131 Midway Rd #900, Addison, TX 75001 | 1-800-563-6872

MUSA Auto Finance is now drivrz financial

Need to make a payment?
Click the link below based on your account creation date.

How to start a leasing company

If you’re a new business or a start-up, what are your options when it comes to vehicle leasing?

Starting out in business can be a tough enough without the worries of what to do about transport. With little to no financial history, start-ups and new businesses often struggle to get credit for vehicle finance, so what are your options?

To talk you through the process of vehicle leasing for start-ups and new businesses, Nationwide Vehicle Contracts has put together a short guide explaining the different finance options available to you, as well as the documentation required to lease a car or van.

Business Leasing

The obvious first route that any business when it comes to leasing a car or van is to take a look at Business Leasing. (LINK: https://www.nationwidevehiclecontracts.co.uk/guides/business-leasing/)
Whilst you may not have much in the way of company history, a business may well be eligible for Business Finance Leasing provided they can supply certain documentation. Check out our Financial Eligibility Quiz (LINK: https://www.nationwidevehiclecontracts.co.uk/guides/business-leasing/finance-elgibility-quiz ) to see if you can take advantage of some great deals when it comes to Business Leasing.

In order to lease a vehicle through Nationwide Vehicle Contracts, your business will need to undergo a credit check as part of the finance application process. You will be asked to provide the following information when you fill out the Business Finance Application form:

  • Company details – including name, address, company reg. number and annual turnover
  • Director details – including name, date of birth and marital status
  • Business bank details – including bank name, account number and sort code

If you are a start-up or a new business which has been established for less than two years, you may also need to provide additional information to support your finance application such as:

  • 3 months’ business bank statements
  • Management accounts (if available)
  • A director’s guarantee (Limited Companies only)

In some cases, a larger initial rental may also be required.

Business Lease Options

There are three main business leasing options that are available to businesses, each created for certain type of business requirements.

Business Contract Hire is a long-term vehicle rental agreement that is suitable for sole traders, partnerships and limited companies. The vehicle is rented over a period of 2 to 4 years and returned to the leasing provider once the contract ends.

Business Contract Purchase is a finance agreement for VAT registered companies and businesses that want to own their own high-value vehicles whilst avoiding the risk of asset depreciation. With this, a company chooses a brand new vehicle, pays an initial deposit and then pays for the car or van in fixed monthly instalments. At the end of the contract, the company has the option to purchase the vehicle at an agreed price known as a balloon payment.

Finance Lease is only available to business customers – including limited companies and sole traders – and offers flexibility and tax advantages to eligible companies that don’t have upfront funds. As part of a finance lease agreement you can choose to pay either the entire cost of the vehicle, including interest charges, over an agreed period or you can opt to pay lower monthly rentals with a final payment based on the anticipated resale value of the vehicle. Throughout the agreement, the vehicle remains the property of the leasing company. If the business is a VAT registered company, they can reclaim between 50% and 100% of the VAT payments depending on whether it is a car or commercial vehicle, and it may also be possible to offset payments against taxable profits.

Personal Leasing

If the lack of a financial or company history hinders your chances of being accepted for Business Leasing, you may want to consider taking out a personal lease contract instead. Unlike Business Leasing which looks at the company’s financial history, a Personal Lease Contract looks at an individual’s finance history to establish if you are eligible for vehicle finance. This is popular option with sole traders who want the advantage of leasing a new car or van but don’t want to wait for the business to build up its financial history. You can check your eligibility for Personal Finance by taking our Personal Financial Eligibility Quiz.

When filling out a Personal Finance Application, you will need to provide the following information:

  • Personal details – including marital status and number of dependents
  • Address details – including any properties you have lived in for the past five years
  • Employment details – including start and end dates for the past three years
  • Your bank details – including bank name, account number and sort code
  • Your monthly income and expenditure – including gross annual income, mortgage/rent payments, monthly bills and any other expenditure you may have

Personal Lease Options

There are two main types of Personal Leasing options available:

Personal Contract Hire is a long-term rental agreement where you pay to ‘rent’ the vehicle throughout the duration of your contract via monthly payments over a 2 to 4 year period, and then return the vehicle at the end of the agreement, leaving the finance company to worry about depreciation values and disposal of the car.

Personal Contract Purchase involves an initial deposit payment, followed by agreed monthly payments, and ending with an option to purchase the vehicle at the end of the contract (if you so wish) or to return it to the finance provider. The monthly payments are not subject to VAT.

Short-Term Leasing

If Business Leasing and Personal Leasing are not suitable for you, start-up and new businesses may want to consider looking at Short-Term Leasing. With Short-Term Hire agreements of up to 90 days do not require a credit check so the lack of a financial history does not come into play here. Insurance cover is also included in the rental, as well as maintenance, breakdown and recovery.

Take a look at some of the options available for Short-Term Leasing here to decide if this may be the perfect option for your business.

Have a question about vehicle leasing for start-up or new businesses? Leave a comment below or call Nationwide Vehicle Contracts on 0345 811 9595 to speak to one of our experienced lease specialist about the best option for you and your business.

Businesses that make steps to change are more successful than those that stand still. With leasing from GRENKE, you’ll never be left behind.

Improve your Cash Flow instantly

The pressure’s off. Focus on your ideas again. GRENKE will take on your receiveables management, no need to waste any time or money.

Tool Up with GRENKE

Offer another way for your customers to pay with equipment finance with marketing tools to help drive sales.

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We are currently experiencing high volumes of calls to our team. In the event you are unable to speak to a member of the team, please send us an email. All enquiries will followed up as soon as possible.

What do you have planned?

The right solution for every type of entrepreneur

Entrepreneurs don’t seek solutions, they find them. This process can be much easier when you are not on your own. That is why GRENKE are here. We can match the perfect financial solution to your business.

How to start a leasing company

Solutions for companies

When your market is becoming increasingly dynamic, we will offer financial solutions that let you respond.

How to start a leasing company

Solutions for self-employed people

Being self-employed doesn’t automatically mean having to do everything yourself. That applies especially when it comes to investing or securing cash flow.

Let us support your ambition to grow and achieve success, by leaving your capital where it belongs – in your business.

How to start a leasing company

Solutions for start-ups

Are you nurturing a big idea in its early stages, but are worried by the investment needed?

Let our financial solutions prevent any further distractions, allowing your idea to get going, with all the investment it needs to become a reality.

How to start a leasing company

Solutions for institutions

Our public institutions are under more financial burden than ever before. How much potential is there for expansion or even modernisation? Plenty, if the right solutions are in place.

We keep our promises. We’ll help you to update your school facilities, make effective investments for local government or support an investment for a charitable organisation that others rely on. Always flexibly and affordably.

New Business – Startups

How many hats can you wear? Well if you are starting up your own business, you will have to wear at least five – Purchase, Operations, Marketing, Finance, and IT. While you can hire staff to do most of these tasks, IT also requires a heavy capital outlay – even if you are opening up with a staff of just five – this is what you will need –

  • Provide laptops, desktops, mobile devices and the like for your staff
  • Set up at least one printer and copier may be 2
  • Set up internet connectivity
  • Set up a network
  • Set up network connectivity
  • Provide for data storage and security
  • Get GDPR compliant
  • Install apps and other software
  • Manage all this in your tight budget
  • And make provisions for future upgrades

How to start a leasing company

How to start a leasing company

While there is a whole lot more to IT, this is the bare-minimum you need.

Apart from the capital you would need to invest – which could be high enough – there is the bother of dealing with various vendors for your hardware, software, networking, and connectivity.

Apart from the capital you would need to invest – which could be high enough – there is the bother of dealing with various vendors for your hardware, software, networking, and connectivity.

GEEX brings you all this in a single window service with a dedicated helpdesk number and email so that you never have to worry about more than picking up the phone and making a call or sending an email.

In fact, many of our clients consider us their remote IT department. Here is what you get with the complete GEEX lease contract coupled with the GEEX support and warranty package –

  • All the latest technology from top brands at your doorstep
  • Replacement for any outdated, obsolete, or malfunctioning (temporary) equipment
  • Standard manufacturer’s warranty for all equipment
  • Option to upgrade or replace 2 years into the lease
  • Complete support for all leased equipment
  • Complete support for all equipment you already own
  • Support for all first-party apps
  • Complete support for connectivity
  • Complete support for networking
  • Vulnerability testing
  • Cyber security solutions
  • Data storage and backup solutions
  • Data recovery solutions
  • Assurance of 99% uptime
  • Option to own the equipment at the end of the lease – for a marginal price
  • Option to upgrade to better or newer models
  • Option to replace the equipment at the end of the lease

How to start a leasing company

Call us on 0121 368 2140 and speak to a GEEX representative – it’s a real person and not a machine – or email us at [email protected]

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We’re a family run business

A decade ago out of a West Midlands garage soon blossomed into a successful leasing business.

GEEX Head Office

12 Birmingham Road West Bromwich,
Birmingham, B71 4JZ

We’re a family run business

A decade ago out of a West Midlands garage soon blossomed into a successful leasing business. Meet the whole team

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All Prices exclude VAT and are quoted per week based on a three year agreement. All offers are subject to credit status and is only open to business users.

GEEX Limited (Company Registration Number 4974118) is regulated & Authorised by the Financial Conduct Authority (FRN No- 619677) and is acting as a credit broker in any finance transaction and work with a panel of asset finance lenders to find a suitable arrangement for you. We do not make a charge to help you find a suitable asset finance lender, however we may receive a commission payment from the lender for our work

How to start a leasing company

If you’re having serious thoughts about joining the car leasing industry, you may already know that the global car leasing market is set to grow by 14.63 million units during 2019 to 2023, growing at a CAGR of almost 14%. What you might not know, however, is whether to start a car leasing company on your own or join a franchise business. Let’s compare differences before you invest in your new venture.

Franchise Versus Your Own Business

Are You Ready to Start a Car Leasing Company?

How much experience do you have? If you want to start a car leasing company from scratch and build your own brand, not someone else’s, knowledge of the car leasing industry is a must. Alternatively, take advantage of an established car leasing company’s experience while creating a business opportunity for yourself.

Own Business

You’ll be handling the business on your own, so you’ll need to be up to speed on key requirements. For example, license and permits must be in order. Business insurance policies need to be looked into. Technological experience is essential, too. If you are using an online system management tool to organize leasing contracts, fleet leasing details and so on.

Franchise Business

If you have the urge to be your own boss but don’t think you have enough experience to get your business off to a strong start, car leasing franchise businesses can give you the support you need. You’ll have access to training services that have been developed to meet the requirements of the car leasing market.

Assessing the Financial Situation

Whether you want to strike out on your own and start a car leasing company or are exploring automotive franchise opportunities, going into the car leasing business is a big investment.

Own Business

Do you have a head for numbers and the know-how to raise money to fund your new venture? If you are confident in your abilities and believe you can overcome the challenges that go with financing a business, there is nothing to hold you back.

Franchise Business

If you’re not a risk-taker and want to invest your money in a business that has a reputable brand behind it, a car leasing franchise is an answer. Furthermore, as a franchisee, it is often easier to secure a bank loan when you have the support of an experienced franchisor behind you. The franchise management team can also assist with financing options beyond traditional bank loans.

Recognizing Your Personality Traits

When it comes down to franchise vs own business, personality is a key deciding factor.

Own Business

if you a free spirit who wants to build a brand from the ground up, then you’ll want to start a car leasing company without the influence of a franchise brand. Your personality traits reflect a desire to succeed in business – you are confident, competitive, disciplined, a risk-taker and a problem-solver.

Franchise Business

If you are motivated and ambitious but more comfortable with the franchise help and support of a team behind you, then being a part of a franchise family is better suited to your personality. You can pursue your dream of working for yourself secure in the knowledge that you represent an established brand that will offer assistance should you need it.

Building a Fleet

The fleet is the heart of your business; therefore, invest in vehicles wisely when you start a car leasing company. Buying cars to lease out will be your biggest expense; experts recommend you buy them outright, as opposed to leasing and then sub-leasing, to avoid legal and insurance complications.

Own Business

Good negotiation skills are imperative. As you build your fleet, you’ll want to hunt down the best deals to obtain vehicles at competitive rates. If you are financially savvy, knowledgeable about cars and confident you can negotiate successfully with dealerships and manufacturers, you have the potential to make your own business a success.

Franchise Business

Car leasing franchises have staff on hand to help franchisees secure the best deals. Reputable franchises have established relationships with car manufacturers over the years, which gives them buying power. In turn, this means franchisees can offer their customers leasing deals at competitive rates.

Hiring a Winning Team

As you grow your business, you’ll need a good team behind you. Hiring employees goes with the job when you start a car leasing company. Recruitment can be time-consuming and challenging, so it is important to know what you’re doing.

Own Business

Are you a people person? If you possess great communication skills and leadership qualities that will inspire and motivate a team, this helps when it comes to recruiting – and retaining – the right people.

Franchise Business

If you’d prefer employee recruiting advice to help build a strong team, a franchisor can share helpful tips. This includes information about screening processes, different types of interview, reference checking and so on. Franchisees are also advised on employee management tools to help you monitor employees’ performance.

Establishing a Marketing Plan

With the predicted growth of the car leasing market in the upcoming years, there will be strong competition from others who want to start a car leasing company. You will need a website and marketing plan in place to attract and retain customers.

Own Business

If you have the experience and the tech skills to build your brand and run an effective online (and offline) marketing campaign, there is no reason why you can’t take control of the marketing side of your car leasing business. This includes utilizing social media platforms, search engine optimization (SEO) and email marketing to target customers.

Franchise Business

Being a franchisee gives you access to a branded company’s existing marketing strategies that effectively connect with customers. This is ideal if you don’t have the time or the experience to come up with a marketing plan from scratch. Experienced franchise support staff can help with PR campaigns, promotional materials and marketing templates tailored to attracting customers. This eliminates the need to experiment with marketing techniques; you can cut straight to the most successful and cost-effective ways to market your business.

If the sound of a franchise appeals to you, check out the DetailXPerts’ franchise opportunity. Our ongoing extensive franchise training will also help you learn how to run a successful business from marketing and business management to managing your funds wisely.

If you are keen to find out more about the franchise industry and keep up to date with DetailXPerts, sign up for our newsletter to hear all about it.

Mercedes-Benz Mobility AG makes leasing flexible and plannable. When you lease a vehicle, you maintain your financial leeway, yet always drive exactly the car that best meets your current needs. With leasing, you pay a monthly amount for the use of the vehicle. These monthly rental payments are defined before you sign your leasing contract.

Before the start of the leasing period, you estimate your annual mileage and decide how long you want to lease the car of your dreams. You can also reduce the amount of your monthly payments by paying an advance rental at the beginning of your leasing period. Leasing periods generally range from 24 to 48 months. After the end of this period, you return the vehicle and have the option of leasing a new model. That enables you to regularly benefit from new technologies and design innovations.

Advantages of leasing

The purchase of a new vehicle puts a strain on the budgets of private households and also prevents companies from investing in other areas. When you lease a vehicle, attractive rental payments enable you to maintain your financial leeway and react flexibly to any change in your circumstances.

The annual mileage, the leasing period, the advance rental, and thus the rental payments are defined in your leasing contract. That way you know exactly how much you will need to pay each month. The leasing period, which is generally between three and four years, is defined in advance, thus giving you a reliable basis for planning.

A sporty coupé for singles and young couples, or a larger vehicle for families? Not everyone wants to be pinned down, and sometimes it’s good that way. If you lease, you can flexibly change vehicles in line with ongoing plans for your life and your family. Because of the limited duration of leasing contracts, you can react quickly to new circumstances.

Because a leasing vehicle is generally kept for only a few years, you can benefit from the technological innovations that are incorporated into every new generation of vehicles. Whether it’s the latest drive system technology, safety features or improvements to infotainment systems — thanks to leasing, you’re always up to date with the latest technological developments.

Supplementing your leasing contract with service components such as maintenance and warranty packages means never having to worry about anything when you’re on the road. That’s because our service packages cover all of the costs associated with vehicle services and wear and tear. You can also take advantage of the insurance packages from Mercedes-Benz Mobility to make sure you’re fully covered. The charges for services and insurance are included in your monthly rental payments, so all of your costs remain clear and transparent. We also offer service leasing and insurance packages for used vehicles.

Mercedes-Benz Mobility offers you carefree mileage leasing. When your contract ends, you return the vehicle to the leasing company and simply lease a new vehicle. The leasing company is responsible for the resale of the vehicle, so you don’t have to worry about the car’s residual value. What’s more, if you’ve driven less than the amount agreed at the start of your leasing period, we refund part of your leasing costs. If you’ve driven further than was agreed in the contract, a follow-up payment will be due.

Business owners and companies also benefit from leasing, because tax laws allow them to deduct their monthly leasing payments as a business expense. The amount of any advance rental at the start of a leasing contract can also be deducted in the year that you make the payment.

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For New Companies & Start Ups

Vehicle leasing for New Companies & Start Ups.

For any new start business, managing cash flow is a critical foundation on which the company can build. Leasing your vehicles can help ease the strain on finances. Yet, being organised and having a few things to hand and ready for your application can help the process. Firstly, you need to keep in mind that getting approved for either vehicle finance or vehicle leasing as a new start-up can have its difficulties. Yet, with Your Car Choice’s in-depth industry knowledge and our vast range of vehicle funding options we’re confident we can help get your new start company driving forward.

How to start a leasing company

What do vehicle finance companies class as a New Start Company?

In the eyes of vehicle funders, a new start company is one which has been trading for 2 years or less. This applies to all trading styles, whether you’re a sole trader, plc, partnership or limited company.

What things could help the application process?

Each application varies between all our funders. We’ll work with you and our extensive range of funders to ensure you can get the vehicles you need. Your Car Choice has a 95% success rate when it comes to helping New Startup Companies.

Vehicle Leasing for New Companies, No Problem!

Being bold and starting new companies shouldn’t hold you back when it comes to vehicle leasing. Your Car Choice can help new companies and Start Ups just like yours find the right lease or finance options to suit you.

Still got reservations? Read some of our frequently asked questions below or read our new company case study to put your mind at ease.

What’s Classed As A “New Start Company”?

Most of our funders class a “New Start” company by one that has been trading for less than 12 calendar months, and is a registered limited company.

What Does “Low Net Worth” Mean?

A low or negative net worth will relate to a weaker financial strength and a lower credit rating, thus directly affecting the individual’s or the company’s ability to raise funds from the market.

Can You Help Manage My Existing Company Car Fleet?

We manage fleets of all different shapes and sizes. From small fleets of vans for a tradesperson, to a large fleet of 50 cars and vans for large multinational companies. Once we’ve completed our FREE fleet consultation we can then look at how we can maximise the potential of your existing fleet.

How Do I Know If I’m Fully Committed With Another Lender?

You will know if you’re “fully committed” to another finance company as an extra request for vehicles has been denied. We have the widest variety of funders so can offer people who are fully-committed another route to finance.

What Do You Mean By “Sub-Prime”?

“Sub-Prime” refers to a particular type of lending. Someone who may be referred to as a “sub-prime borrower” is a person with either one or all of the following permutations; a poor credit score, CCJ’s (County Court Judgements) or someone who has missed payments on other financial agreements such as credit cards, store card or a mortgage etc. Sub-prime borrowers are more of a risk to finance houses, and the cost of borrowing is usually a lot higher for someone classed as “sub-prime”.

What Is Return to Invoice GAP Insurance?

Also known as: “Back to Invoice GAP”, “VRI GAP” or “BTI GAP”.

In the event of an insurance write-off, the motor insurance company is only obliged to pay the ‘fair market value’ for the vehicle. RTI GAP Insurance pays the financial shortfall between the insured value and the greater of either the original purchase price of the vehicle or the outstanding settlement value on your finance agreement (subject to conditions).

Return to Invoice GAP is suitable for the following contract types:

Business Contract Purchase
Personal Contract Purchase (PCP)
Lease Purchase

What Is Contract Hire GAP Insurance?

Also known as: ‘Finance GAP’.

In the event of an insurance write-off, the motor insurance company is only obliged to pay the ‘fair market value’ for the vehicle. This may or may not be sufficient to cover the amount required to settle off the Contract Hire Agreement. Contract Hire GAP Insurance covers this potential shortfall (subject to conditions).

Contract Hire GAP is suitable for the following contract types:

Business Contract Hire (BCH)
Personal Contract Hire (PCH)
Finance Lease (FL)

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How to start a leasing company

Van leasing vs buying used

Van leasing vs buying used – making better business decisions Having a business fleet certainly doesn’t come cheap. So, when determining how to purchase one, there’ll be a number.

How to start a leasing company

How to build a fleet on credit as a startup

Young businesses come across many obstacles in their initial stages. One such barrier for startups is just how to finance a vehicle – something that may be essential to.

How to start a leasing company

5 reasons why your business can’t lease vehicles

Rather than paying for a vehicle upfront, leasing can seem like a simple solution to ensure your business doesn’t go into negative cash flow. But, sometimes, you may find.

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How to start a leasing company

Some business grow from a small one person endeavor like those we talked about who market on Edsy while others begin because someone leaves an established company because they believe they can do it better. Being a startup business, no matter how you begin, has many challenges and one of the biggest can be equipment leasing or financing. Today we’d like to share two success stories about our ability to approve equipment leasing for two new businesses.

Formerly a Trucker, Now an Owner-Operator

How to start a leasing company

For those of you not familiar with the trucking industry, there are generally two types of truckers; those who are assigned routes and use company trucks (and are generally paid less because they are using company equipment) and owner-operators who own their own rig and haul the trailers for businesses. A gentleman from outside Atlanta, GA contacted ELEASE about leasing a used freightliner he found for $22,500. He had obtained his commercial license about five years ago and had been a truck driver for about that long. When looking at his equipment leasing application for this freightliner, we took several things into consideration. First, we looked at his personal credit score which was 620. Then we looked at his driving record and saw that it was very good. Lastly, we took into consideration that although he was “starting a business,” the business he was starting wasn’t something new to him. He has a strong track record of work and the only change was that he was going to be making more money with his own rig. We were able to approve his start-up venture and beginning January 1, 2015 he’ll be working for himself and once the lease is up, he can choose the buyout option on his lease and own the freightliner.

Working While Starting A New Venture

How to start a leasing company

Another start-up we funded recently was an equipment lease for a new restaurant venture. Often restaurants are viewed as high risk to fund any sort of loan for because of their high failure rate and high start-up costs. However, in this case we were able to help this Bronx, NY restaurant with equipment leasing for new freezers. The space that they are renting is mostly complete with the exception of working freezers so the risk to ELEASE was considerably less than if they needed all new equipment. The new owner came to ELEASE looking for $11,000 and he had a credit score of 650. Because we’re a personalized leasing company and not a big bank, we were able to question this owner further and upon learning that he is going to continue working his full time job while the restaurant is established, we were able to approve his equipment lease.

Our hope is that even if you are a start-up that you will consider ELEASE if you need equipment leasing. We spend time with each client to work to approve their application. We consider each lease separately; there are no one size fits all rules at our company, that’s why we’re able to approve leases for new owner-operators, new restaurateurs and other new ventures. Contact us today even if you’ve been turned down but another leasing company. We’d love to consider your individual circumstance and needs. One of our team members can be reached at 800-499-2577.

Why You Should Choose Britannia

Here at Britannia Car Leasing we pride ourselves on our industry expertise, customer service, and ability to source your dream lease car at the perfect price. We also cater for businesses who are looking for a fleet of cars at a competitive price for their staff. We are proud to say that we are one of the UK’s leading multi-brand car leasing specialists. We offer free Nationwide delivery and have over 20 years of industry experience. Our customer advisors are just a phone call away and are able to answer any questions you may have on the leasing process, whilst trying to make your experience as smooth and stress free as possible. Don’t just listen to us though, read through the masses of positive reviews for our service and see how we can help you today.

How to start a leasing company

About Car Leasing

Why you should choose leasing?

If you want to drive a brand new vehicle whilst also benefiting from added incentives such as your road tax included as standard, then Car leasing is the cost-efficient and stress-free option to choose. You don’t have to worry about your price increasing throughout your contract as we offer from fixed monthly payments. The vehicle is purchased by the finance company who estimates a value of the vehicle at the end of the term and then breaks down this price into monthly payments which tend to much lower than that of a loan.

Am I eligible for leasing?

One of the many advantages about leasing a car, whether it’s a personal or business contract, is that almost anyone can do it. If you hold a full UK driving licence and are approved by our external finance check (just to make sure you can pay your monthly installments) you are eligible to lease one of our many models of vehicles available. It’s a quick and easy process to get you that brand new car you’ve been looking for.

Is leasing the right decision for me?

If you think that driving a new vehicle every 2 to 3 years at an affordable price, whilst also avoiding MOTs and unforeseen bills sounds like a good idea, then car leasing could be the best option for you. You can lease a new car today and never have to worry about the monthly payments going up making this a perfect option for people on a budget. However even though the car is in your possession the entire time of your contract you never actually own it which can been seen as a positive or a negative. If you are thinking about leasing a car for the first time and whether it’s right for you then please feel free to call us to discuss any of your queries.

  • Overview
  • Investment Basics
  • Mutual Funds
  • Pension Funds
  • Real Estate Investment Trust
  • Leasing Companies
  • Investment Banks
  • Capital Market
  • Bonds
  • Shares
  • Future Contracts
  • Insurance
  • Islamic Financing & Products
  • Investor & Shareholders Rights
  • AML/CFT
  • Entrepreneur Corner
  • Glossary
  1. From where can I get basic/detailed information about a Leasing Company/ Investment Bank/ Housing Finance Company?

The information can be obtained from the following sources: The credit rating reports can be obtained from the websites of the credit rating companies. The following are the addresses:

  1. Securities & Exchange Commission of Pakistan (SECP)
  2. Published Financial Statements of the Company
  3. Official web site of the company
  4. Relevant Company Registration Office (CROs) in which the company is registered
  5. Credit rating reports issued by the credit rating companies
  6. NBFI & Modaraba Association of Pakistan

The credit rating reports can be obtained from the websites of the credit rating companies. The following are the addresses:

  1. http://www.jcrvis.com.pk
  2. http://www.pacra.com
  • From where can I get financial statements of a Leasing Company/ Investment Bank/ Housing Finance Company?
    The published financial statements can be obtained from following sources:
    1. Official website of the company
    2. Office of the company
    3. Relevant Stock Exchange (s) where the company is listed
    4. NBFI & Modaraba Association of Pakistan
  • What is the location of CROs:?
    The CROs are situated in the following cities:The complete address of the CROs can be obtained from the official web site of the Securities and Exchange Commission of Pakistan.
    1. Islamabad
    2. Lahore
    3. Karachi
    4. Quetta
    5. Peshawar
    6. Faisalabad
    7. Multan
    8. Sukkur
  • How I can know that the Leasing Company/ Investment Bank/ Housing Finance Company have valid permission to issue certificate of investment/deposit?
    The company may be asked to show the permission granted by the Securities and Exchange Commission of Pakistan or such information can be obtained by contacting Securities and Exchange Commission of Pakistan or through its website.
  • Who should be contacted to check the registration status of the company?
    In order to check whether a company is registered or not, the head office of the Securities and Exchange Commission of Pakistan or any of its CROs can be contacted.
  • What are the important laws dealing with leasing companies and from where can obtain copy of these laws?
    1. Companies Ordinance, 1984
    2. Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003
    3. Non-Banking Finance Companies and Notified Entities Regulations, 2008

    Any other SROs and circulars issued by the Securities and Exchange Commission of Pakistan regarding Leasing Company/ Investment Bank/ Housing Finance Company. All the above laws, SROs and circulars can be obtained from the official website of the Securities and Exchange Commission of Pakistan at the following web address:

  • What are the important web links which can provide information about a Leasing Company/ Investment Bank/ Housing Finance Company?
    1. NBFI & Modaraba Association of Pakistan – http://nbfi-modaraba.com.pk
    2. Securities & Exchange Commission of Pakistan – http://www.secp.gov.pk
    3. Karachi Stock Exchange – http://www.kse.com.pk
    4. Lahore Stock Exchange Limited – http://www.lahorestock.com
    5. Islamabad Stock Exchange Limited – http://www.ise.com.pk

    Apart from above, information can be obtained about general state of economy and financial sector from the following sources:

    1. State Bank of Pakistan – http://www.sbp.org.pk
    2. Federal Board of Revenue – http://www.fbr.gov.pk
    3. Pakistan Bureau of Statistics – http://www.pbs.gov.pk
  • In case of any dispute with the company, who should be contacted to launch a complaint against the company?
    The complaints can be sent to any of the Company Registration Offices of the Securities and Exchange Commission of Pakistan or to the Specialized Companies Division’s Karachi and Islamabad offices.
  • What are the important things which should be kept in mind while taking any loan or making any deposit with the NBFC?

    For Taking Loan

    1. What are the loan application processing charges and any other charges for processing the loan application.
    2. The borrower should at the minimum obtain the following information once the loan is approved:
      1. The amount of loan,
      2. date of the disbursement,
      3. the date of its maturity,
      4. repayment schedule i.e. the amount of installment along with its break-up (principal, mark-up, other charges i.e insurance, collection, etc)
      5. the nature of the security, if any,
      6. the rate of mark-up to be charged,
      7. whether the mark-up is fixed or floating. In case of floating, the frequency of its revision.
      8. In case of any delayed payment; the penalty applicable on late payments.
      9. Prepayment penalties, if any, in case of early payment of loans
    3. The name of the insurance company with which the asset is insured and the procedure for obtaining insurance claims.
    4. The borrower should keep record of all the payments made to the NBFC. Once the loan is fully repaid, obtain a loan clearance certificate from the NBFC.

      For Making a Deposit

    1. A person investing in the deposit schemes shall note that the deposits raised by a NBFC are subject to various risks especially credit risk. The deposits of a NBFC are unsecured and are lower in rank to secured creditors of the NBFC. As per law, no preferential treatment is available to depositors of a NBFC in case of its liquidation.
    2. Prior to making any deposits, the prospective depositors are advised to conduct their own risk analysis.
    3. The depositor should at the minimum obtain the following information from the NBFC

      1. The amount deposited
      2. The tenure of the deposit
      3. The mode of repayment of the deposit
      4. The frequency of payment of profit.
      5. Whether the rate of profit is fixed or subject to revision. In case it is subject to revision, the frequency of revisions
      6. The terms and conditions subject to which the deposit will be renewed or rolled over.
      7. In case of premature encashment, the amount of monetary penalties, if any, to be paid on early encashment or the period of time, if any, during which no profit or a different rate of profit will be payable.

    How to start a leasing company

    You need vehicles for business use. But you might consider buying or leasing one through your company rather than as an individual. Basically, this just means your business is officially named as the owner or lessee of the vehicle.

    Overall, the process of buying or leasing a vehicle through your business looks fairly similar to buying or leasing a vehicle as an individual. But you still need to find a dealer. And select a model that works for your specific needs and secure financing. However, look for some variances when buying.

    How to Lease a Car Through Your Business

    Take a look at what the process looks like.

    Work With a Dealer That Offers Commercial Service

    Different manufacturers offer different programs and terminologies for this. But basically you need to find a dealership officially authorized to work with commercial customers. Ford calls this type of dealership a Commercial Vehicle Center. Consider Village Ford in Dearborn, Mich. for example.

    Village Ford General Manager Bob Wheat said in a phone interview with Small Business Trends, “As a CVC dealer, we have access to different programs than other dealers, we can offer commercial financing and it’s just a much easier process.”

    This doesn’t necessarily mean the dealership only works with commercial vehicles. Village Ford offers options for both individuals and businesses. But they employ a dedicated commercial salesperson and a few other team members specifically authorized to work with commercial customers.

    Consider Customized Solutions

    The type of vehicle or vehicles that you choose can vary widely depending on your specific needs. If you’re just looking for a simple passenger vehicle, then this part of the process may be fairly similar to buying or leasing a car for personal use. You could simple find an in-stock option and then work with the dealer to fine-tune the details.

    However, for businesses that need fleet vehicles, heavy duty options or cars with very specific features, you might instead work with a dealer to create a customized solution. To do this, you’ll first need to have a very clear idea of what your needs are. You may also have better luck getting the ideal vehicle if you give yourself some time to shop around and work with a dealer on customization options, rather than desperately searching for something that you can drive off the lot in a single day.

    Wheat also emphasized the importance of working with a dealer that really understands the needs of commercial customers. They can help to ensure that your vehicle choice is set up to handle your specific hauling needs, size requirements and budgetary concerns.

    Choose Between Buying and Leasing

    Businesses have the option of either buying or leasing certain commercial vehicles. When you buy, you often make slightly higher payments. But they go toward paying off the vehicle. So once you’ve paid it off, you own the vehicle outright and it becomes an asset for your business. When you lease, you don’t ever actually own the vehicle. You simply make payments through a period, usually of about three years. Then you turn the car in at the end of that period or have the option to purchase it. The payments are often a bit lower for leases, but there are also mileage and availability considerations to make.

    One option isn’t automatically better than the other, according to Wheat. You simply have to evaluate your business’s situation and what your exact vehicle needs are to determine which one is a better fit.

    He says, “If you only want a vehicle for about three years and you don’t want to take cash out of your business to put a lot of money down, then you should probably think about leasing. It reserves cash and doesn’t tie up your credit line. You’re basically opting for planned obsolescence in exchange for a new vehicle. But if you’re looking for a vehicle that’s highly specialized for your business and you want to drive it until the wheels fall off, those people should think about buying.”

    Bring Your Business’s Financial Documents

    You should have a copy of your latest balance sheet and any other financial documents that can help you demonstrate your credit worthiness. You’ll need to establish a relationship with a lending institution. So they’ll want to look at your business’s cash flow, revenue, debts and any other elements that could impact your ability to re-pay your car loan or make lease payments on time.

    Be Prepared to Guarantee the Loan Personally

    If your business does not have enough credit to qualify for a loan or lease payment plan that fits your needs, you may need to guarantee the loan on a personal level. You would still be allowed to buy or lease the vehicle or vehicles through your business officially. But you would also be personally responsible if you’re not able to make the payments.

    Work with your dealership’s finance department to come up with the terms that work best for you. This may not be ideal for some business owners. But especially for new or unestablished businesses, it’s often your only option and may help you start to build some financial history that could help you going forward.

    Providing leasing solutions over 30 years

    Why Jim Peplinski Leasing?

    How to start a leasing company

    VEHICLE LEASING

    How to start a leasing company

    Fleet Management Services

    How to start a leasing company

    EQUIPMENT LEASING

    How to start a leasing company

    VEHICLE REMARKETING

    How to start a leasing company

    PRE-OWNED VEHICLES

    LIVERY AND ACCESSIBLE VEHICLES

    Who We Are

    Jim Peplinski Leasing is a premier Canadian vehicle leasing company, providing commercial auto leasing and equipment leasing options for you and your business. Our passion is helping Canadians find, manage, and remarket their assets, handling the logistics without stress.

    Specializing in custom leasing solutions, we can create a plan tailored to the specifics of your company.

    How to start a leasing company

    Any Make, Any Model, Anywhere in Canada

    Don’t just take it from us, let our customers do the talking!

    Reasons I love leasing through Jim Peplinski Leasing: 1. I don’t have to do any of the legwork- I don’t have time to shop vehicles leasing rates at dealerships. I’m much better at building houses. 2. When I need a new company vehicle it just takes one phone call 3. I get great a Read more.

    I have been dealing with Jim Peplinski Leasing for the past four years. I have entrusted the leasing of both my personal and business vehicles to their organization as I had dealt with Tim Ahern their commercial lease manager previously at another company and was more than happy to give hi Read more.

    To all out there thinking about using Jim Peplinski Leasing, let me put your worries behind you, I have dealt with the team in Ottawa for over a decade currently (Tim and Tracey) and they have looked after my every need from getting new vehicles with applied discounts to sending vehicles t Read more.

    Doing a great job Lindsay! Keep up the great work. Read more.

    “Air-Serv has been working with Jim Peplinski Leasing for almost 20 years. Jonathan and his team have always provided exceptional service. They respond immediately to requests and think outside of the box for solutions. You can tell they care about our business and helping us grow. Read more.

    We have engaged in a rapidly growing relationship with Jim Peplinski Leasing. We found them to be very nimble and responsive in adapting to our fast-changing needs. They have a competitive product offering backed by solid service. Read more.

    Over the past 20 years Treeline has been dealing with Bob Cameron and the JPLI team exclusively for all our corporate vehicle leasing needs. Bob and JPLI were referred to me in the mid-nineties by my father who at that time was looking after the fleet leasing requirements for a mid-tier o Read more.

    JPLI and Lindsay Lessor are very professional and easy to deal with. Based on my experience I have recommended them to a number of other people and will definitely continue to do so. They really are 5 out of 5! Read more.

    I am employed in the Oil & Gas industry in Western Canada, I have dealt with JPLI for many years for all of our truck leasing needs. Bob Cameron has been my representative during this time and has given me top notch professional service. He is open and honest with helping with all of our l Read more.

    Jim Peplinski Leasing and Robert Greek have been excellent to deal with. There is no other leasing company I would compare their service to. I would absolutely refer them. Read more.

    Jim Peplinski Leasing offers O.E.L members true value in it’s commercial leasing product and fleet services. From negotiating with manufacturers, to helping members run more efficient fleets, their services directly impact the bottom line of our members saving them time and money. In ad Read more.

    “Jonathan Shapiro from Jim Peplinski Leasing has been our fleet provider for all our vehicle acquisitions for many years. It has been a pleasure. Jonathan gives us honest, personal service and lets us concentration on our business while they take care of our vehicle needs. When we ask Jon Read more.

    “I have been working with JPLI, more specifically Lindsay Lessor since 2011 in my roles at Apollo Gold Corporation and more recently at Walden Group. Throughout this time, Lindsay and JPLI have consistently provided an excellent level of customer service, providing updates and information Read more.

    “We are in our third year working with Lindsay Lessor from Peplinski Leasing. We are extremely pleased with the level of service provided by the Peplinski Team. They truly deliver one-stop shopping for all of our vehicles needs and this has significantly decreased our required level of e Read more.

    “I have been a client of JP Leasing for about 2 years now. I was clearly paying way too much money to my previous leasing company and not getting the satisfaction I deserve. With JPL, I am saving money and getting service and vehicles quickly and painlessly. I am extremely happy with deal Read more.

    “I have worked with JPL for over 7 years. As a business owner I depend on JPL’s excellent and timely customer service to take care of all my transportation needs. They are very helpful. I recommend them without hesitation and when it is time to lease my 5th vehicle from them will once agai Read more.

    “Our first ever lease was done with Jim Peplinski Leasing. We were always unsure of leasing, as we knew nothing about it. JPL took the time to explain the concept, understand our business needs and located the perfect vehicle for us. Leasing through JPL allowed us to attain the lowest cos Read more.

    “Robert Greek has always been available to give me the very best answer or solution, no matter what my request was. He is very easy to talk to and has always made me feel that I am one of his best customers.” Read more.

    “Jim Peplinski Leasing has been servicing my company needs faithfully for the past 23 years! The quality of service has been outstanding and has proven to be trustworthy, always available and has my company’s best interest at heart. JPL has always gone the extra mile for the sake of cust Read more.

    “I have dealt with Jim Peplinski Leasing for more than 10 years. Throughout our relationship they have provided outstanding service and value. Their understanding of our business needs and the ability to respond quickly and efficiently has made it a pleasure to do business with them. I wou Read more.

    “I want to thank Robert Greek for all the help and knowledge he has passed on to me this year. The extra mile he goes to to help out when I need information or assistance dealing with registries is greatly appreciated by me. By the looks of things we will continue to grow our fleet, and I Read more.

    “I have been dealing with JPL since Jim Peplinski first started the leasing business in 1990. The relationship has continued through three start-up companies with which I have been involved and I have with confidence recommended JPL to friends in the oilfield service business for their lea Read more.

    Contact us for more information on how leasing can work for you and your business.

    The Business Overview

    When it comes to car leasing business, we are referring to the art of leasing out cars to people for commercial purposes.

    You charge a fee for this and determine the duration for which you want the car to be leased. It is a highly profitable business, especially when located in a populated area with frequent commercial activities.

    For you to succeed in this business, however, you need to do some facts findings first, conduct a market research and develop a good business plan.

    Car leasing business is capital-intensive and needs a good managerial effort and attention to succeed.

    Profitability Of The Business

    To ascertain how profitable this business is, you need to develop a feasibility study first. This will give you a clue as to what the pitfalls and risk factors are in this business, as well as the merits and demerits of the business.

    With your feasibility study, you will be able to know your target market as well as grade your success rate. Car leasing business comes in two varieties: Specialized service and General car leasing.

    When your feasibility study is well done, you will be able to know your start-up capital, required expenses, permits, and licenses as well as prospective competitors.

    The aim of a market research is to have a better evaluation of your potential customers, their availability, lifestyle, price sensitivity and purchasing power. You will also know their level of education, occupation, gender, income strength, and age etc.

    These go a long way in boosting your level of profitability in this business

    The Expected Market & Customers For This Business

    While planning to process of starting a car leasing business, you need to establish the quality of service you will be offering your prospective clients. This includes the brand or class of cars you will be focusing on. It is there and then that you will know whether you will be operating with the ordinary regular cars or exotic cars.

    Tourists and travelers are the common patronize car leasing business. So, you should take care of this category of customers during your feasibility study and planning.

    The demand for car leasing business revolves around the transportation sector too, aside from the tourism sector described above. Airport shuttle, for example, need pick up and drop off services.

    As such, car leasing business will be in demand. Also, businessmen and executives do patronize intra-city car hire to key business destinations in Nigeria. So, Car leasing business is a duplex of the transport sector and tourism sectors of the Nigerian economy.

    Finance and Startup Costs

    Although the price fluctuates, if you want to go for Fairly-Used Salon Cars such as preferably Peugeot, Toyota or Nissan brand, you may need about N1,500,000.

    You may also need to get an open Space for this business. The cost of this depends on your area or location. Furniture, marketing, and other miscellaneous expenditures may gulp around N1,000,000 too. So, it is likely that for a one-vehicle car leasing business, we are looking at around N3,000,000.

    So, for a start, we are looking at roughly N5m, depending on your scope.

    Get & Register A Business Name

    You need to get your car leasing business a good business name. This should be simple enough to spell, write and say but meaningful. It should be such that the message of your business is conveyed at first sight or mention.

    Once you have identified your business name, register it with the Corporate Affairs Commission of Nigeria (CAC).

    Get A Business Plan

    A business plan is a business sustainability tool which will help you to understand and define your car leasing business from startup to the running stage. It is a comprehensive chart which details focus areas of your business and how to achieve each set milestone.

    With your car leasing business plan, also, you will be able to determine and outline necessary machines, tools and equipment needed for this business. it also shows a breakdown of your income and expenditure in this business.

    Types Of Cars & How To Get Them In Nigeria

    There are basically two kinds of cars you can use for car leasing business. These are new cars and fairly-used cars. As such, depending on your startup capital, you can choose to either direct-purchase new vehicles or buy fairly-used vehicles. The third option is to get your car leasing vehicles via hire-purchase.

    Necessary Car Licenses & Insurance Cover

    Car leasing business needs a business license to operate smoothly. You also have to do all the paperwork at the Nigerian fire Service and, also, get an insurance cover.

    Car leasing business insurance cover is different from that of general car insurance. Also, you need to carefully consider the insurance requirements and conditions.

    The cars involved need to be in good condition to get adequate insurance cover. Concerning customer expectations, you will need to make the following decisions:

    Setting Operating Hours & Pricing

    This is left for you to decide whether you will be running 24 hours of the day, or for selected hours and, also, whether you will work on weekends and holidays.

    In Nigeria, and in the town where you wish to do this business, there is a generally agreed pricing mechanism already.

    So, all you need to do here is to move around and make inquiries from those already in this business. The mode of payment is likely going to be cash. It is there and then that you can determine your working hours or days.

    Marketing Tips For Success

    Effective marketing will help you to identify, prospect and profitably satisfy consumers’ needs. For every business to succeed, the importance of an effective marketing cannot be ruled out.

    What your business does, or should be doing should be to create value. In return, the profits will pull in by itself.

    To directly target and get in touch with your market, you need to take your business online. Businesses promoted online do get an almost instant response and conversion rate, as compared to those promoted offline.

    You can as well create a car leasing portal where you get client details. There, you will state your payment modes and contact details. This is where you will display your cars for leasing, booking time and prices.

    Sustainability & Profitability Tips

    Unique selling propositions here entails adding value to your quality of service. It’s all about adding a touch of class to your business so that there can be a striking difference between you your competitors.

    This is where branding comes in. branding will help you beat competition, price, and give you a market share in car leasing business. of course, this can be a simple act of painting and rebranding of your vehicles so that you can easily earn rental patronage.

    Conclusion

    I hope this guide was helpful to anyone who wishes to start a car leasing business in Nigeria today. Please drop a comment below if you need further elucidation.

    How to start a leasing company

    How to start a leasing company

    Launching a startup business is no easy task, especially if that business requires special industry equipment that is not easily mimicked with software and a home computer. Whether you need high-end copiers, manufacturing equipment, or commercial kitchens, the investment in these large equipment pieces can take a huge bite out of your initial startup capital, which can be dangerous in the long run.

    In fact, many startups eschew buying their necessary industry equipment, but that’s not to say they go without. Instead of opening a loan and putting down a downpayment, startups often choose to lease their initial business equipment and may even continue to lease after revenue would make it possible to buy.

    This is because equipment leasing has a surprising number of benefits for a startup, from flexibility to liquid cash flow.

    Why Startups Lease Business Equipment

    When a startup begins, there is a certain amount of investment capital that can be spent on locations, supplies, furnishings, employee wages, marketing, and so on.

    You need your investment capital to remain liquid as you build your revenue-generating infrastructure. A goal that doesn’t mesh well with taking out a large loan for your specialized industrial equipment.

    Startups often lease their initial equipment because in those first crucial months or years of doing business, it’s far more strategic and cost-effective to do so.

    In some cases, it allows a startup to have the best equipment on the market when they might otherwise be unable to afford to offer their clients the very best. But let’s dive right into the details one by one.

    How to start a leasing company

    Retain Your Liquid Capital

    First and foremost, your capital stays liquid and your taxes handle the equipment as leasing assets rather than purchased assets.

    You do not take out a great deal of debt or sink a big chunk of your startup capital into down payments on large equipment. That liquid capital can be used for other important aspects of launching your startup while you gain the use of the equipment you need through leasing.

    Keep Your Startup Overhead Low

    Loan terms for startups are not always favorable and the monthly payments are likely to be fairly high. Almost universally, leasing equipment results in lower monthly payments which keeps your initial overhead low.

    In the delicate startup process, you need to keep your overhead as low as possible in order to make the most of your ‘lift-off’, much like launching a light plane. You don’t need the drag of debt on your record or high monthly payments on your overhead. Leasing lightens that load so that you can launch more easily.

    You can worry about whether to buy or continue leasing when your revenue is self-generating and in a healthy growth cycle.

    Equipment Flexibility in Selection and the Latest Models

    Leasing also has the advantage of opening up your options. Where you might be considering older or used models of equipment to purchase, you can lease the latest models of the equipment you need on the spot.

    Even better, when the lease term is over you will be able to upgrade to the next latest model, keeping your startup on the cutting-edge of equipment technology to achieve your purposes and/or serve your clients.

    Chance to “Try Before You Buy”

    Finally, leasing allows a startup to take their industry equipment for a test-drive before sinking capital into buying the equipment outright. You may discover things like maintenance, upkeep, and the differences between brands that are vitally useful to know when making a high-priced purchasing decision.

    In other words, you get to try out the equipment before buying it. Many leasing offers include the option to buy the equipment you’ve been using, or you can just keep upgrading with the lease so you never have to worry about the process of reselling an old model to afford the latest.

    Equipment Leasing for Start-up Businesses – Wilmar Can Help!

    If you are spinning up a startup and need specialized industry equipment, Wilmar is ready to help. Our team is prepared to source the right equipment and arrange a leasing contract that works within your personal startup launch plan so that you get everything you’d hoped from the choice to lease the equipment you need.

    Contact us today to find out more about how Wilmar can help your startup with customized equipment leasing options!