By RAM Tracking on 11 Apr 2018

Commercial Line of Credit – CLoc

The first option to consider when financing a vehicle fleet is what is referred to as a Commercial Line of Credit, or CLoc.  A CLoc is aimed at small and medium-sized fleets that is designed to help simplify your organisation’s fleet funding administration.  To be eligible for a Commercial Line of Credit, the company should be registered as a Limited Company or Partnership and allows for the opportunity for the business to own the vehicle at the end of the payment structure.  For small or medium businesses, the added benefit of a CLoc provides the flexibility to choose the initial deposit and a preferred repayment period, allowing for a wide variety of pricing terms to meet the specific financial needs of the business.  A typical CLoc will also provide for a balloon payment at the end of a specific term, such as 3 or 5 years, where any remaining balance at the end of the term will be paid in full, then transferring final ownership to the business. 

If the goal of the organisation is to have flexibility in payments with the ability to maintain ownership of vehicles in the fleet after final payments are provided, the Commercial Line of Credit option would be a top pick. 

Finance Lease

Vehicles and technology are constantly moving forward at an overwhelmingly impressive rate of speed.  As soon as a vehicle pulls out of the lot, there are two newer models being developed and manufactured to take its place.  For a business that is looking to have minimal capital outlay, with a fixed monthly payment, while also maintaining the ability to hand the vehicle back at the end of a given term and get a new one, the option of Finance Leasing could become optimal. 

Finance leasing has become more and more popular in the UK for businesses of all sizes for two primary reasons: quality and quantity.  Quality and quantity are often referred to as being impossible to achieve at the same time, with a focus on one normally outweighing the other. However, financing your fleet with regards to leasing provides this ability for many businesses every day. 

First, the ability to maintain low costs based on a lease term, rather than the actual cost of a vehicle, allows for a business to acquire a higher quantity of vehicles for their fleet with higher specifications that may have otherwise been out of the price-range with a flat purchase option.  Additionally, the ability to revolve older vehicles that are coming to an end of a lease, while acquiring the next newer model, provides an enhancement to the overall brand of the business. Potential customers and the general public view the vehicles that are being utilised on a daily basis.  When the customers see your business using a newer, more economical model, their vision toward your brand will be of higher quality as opposed to another business who may have used an outdated model. 

Additional Financing Options

Just as there are countless vehicle options to consider, the ability to finance vehicles for business fleets continues to grow and develop alongside an ever-changing world of commerce.  Fleet financing options, such as the Ford Contract Hire provides unique maintenance enhancements along with financing for vehicles that are being taken on for a business.  Whether it is leasing your fleet, purchasing with a CLoc or business loan, or a custom plan developed for a specific model, the right choice is out there for your organisation.  

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