Vehicle Finance: driving businesses forward

• With September marking the next new registration plate month, many businesses will be looking to invest in new vehicles
• Find out how vehicle finance solutions can provide flexibility and help preserve cash flow for your clients

2024 is set to be a strong year for the UK's new car market, with registrations of vehicles on the rise, up by 7.1% year to date (May 2024)*. And with September marking the next ‘new plate month’, many businesses will be looking to take the opportunity to expand their fleet and acquire a fresh set of wheels or replace ageing ones. 

Buyers will be looking to take advantage of the likely higher residual value available on new plate vehicles, with less depreciation throughout their ownership, and benefiting from better pricing offers, warranty options, fuel efficiency and additional tech and safety features. 

But while there are many advantages to acquiring new DVLA-registered vehicles, it can be a significant capital outlay for businesses. Omar El-Faramawi, Head of External Sales, Digital SME at Shawbrook, explains how an asset finance facility can help your clients invest, while retaining cash in their business.

Fuelling success, protecting cash flow

Vehicles are the engine of many small and medium enterprises (SMEs). Whether a director of a construction business requires a new car to attend site visits, or a logistics company needs to expand its fleet of trucks to cater for increased demand, making these investments is crucial and can be key to driving growth. However, the cost outlay is substantial and can significantly impact cash flow. This is where suitable finance options can provide flexibility and help preserve vital working capital by allowing businesses to spread the cost over several months or years.

Speedy finance for simple deals

Often, speed is of the essence when acquiring a new vehicle. At Shawbrook, we provide fast and simple finance solutions for deals up to £250k via our Flow offering. If a business is looking to make a quick purchase of a new vehicle, they can access the funds they need without delay. 

This covers: 

• Cars
• Directors’ vehicles
• Light good vehicles (LGVs) – e.g. vans, pick-up trucks
• Heavy goods vehicles (HGVs) – e.g. trucks and trailers
• Roadside recovery vehicles
• Construction, waste recycling and drainage management specialist vehicles
• Electric vehicles including taxis 

From single vehicles to large fleets… 

Fleet registrations are currently dominating market share (59.8%), up 24.2% year to date (May 2024).* Transport and logistics, construction, food delivery and utilities are just a handful of the many sectors that rely heavily on vehicle fleets. These businesses need to regularly refresh and expand their fleets to ensure reliability and efficiency, as well as achieve their growth ambitions.

Due to the cost and frequency of fleet acquisitions, for many businesses it makes financial sense to enter a hire purchase or finance lease agreement, allowing them to spread the cost into fixed, monthly repayments - often timing their contract renewal dates with ‘new plate’ months, so they can regularly refresh with the latest vehicles on the market. 

Naturally, these requirements are often larger and more complex, so working with a specialist lender who can tailor bespoke funding facilities is key. 

Ocado Retail Ltd, the UK’s fastest growing supermarket, expanded its delivery capacity to meet growing customer demand, by investing in a new fleet of vehicles funded by Shawbrook. 

Shawbrook provided a bespoke multi-million-pound Hire Purchase facility to enable the acquisition of 43 new refrigerated vans. 

Why Shawbrook for vehicle finance? 

We provide a best-of-both approach, using technology to provide quick decisions and fast payouts on simple deals while dedicating human expertise and ingenuity to work with brokers on large or complex cases. From single-vehicle applications to large fleet needs, we can support your clients to drive their businesses forward.

• Competitive rates
• Quick, Flow service for deals less than £250k
• Tailored credit lines for larger requirements
• Local, experienced BDMs at the end of the phone
• Dedicated Lending Partners to support large and complex cases through credit approval

If you are looking to assist your clients with their vehicle requirements, find out more about working with us, or get in touch with our team today. 

* Data source -  https://www.smmt.co.uk/vehicle-data/car-registrations/