The purchase of a business fleet is often marred with challenges, long-term contracts and a great cash outlay that can hurt liquidity, which makes fleet access very difficult for business owners, especially during the early stages of the business and during a stop-start pandemic.
Now businesses are taking advantage of flexible monthly fleet subscriptions over traditional fleet ownership; a model which sees the business ridding themselves of the capital expenditure or the frustrations of accessing fleet finance as an SME, allowing them to focus on their core business objective; driving profitability.
FlexClub understands that running a business is already challenging and now offers businesses easy access to the most flexible business fleet solution; monthly vehicle subscriptions, that reduce the burden on cash flow and quite simply, help businesses stay in control of their fleet costs.
The demand for companies taking traditional vehicle financing has decreased and fleet purchasing decisions have been deferred by many businesses, due to the break in business continuity caused by various lockdowns, weak economic growth, as well as uncertainties associated with operating in a post-pandemic world. Consequently, car subscription services for businesses are gaining popularity worldwide.
“The FlexClub marketplace provides companies with a range of easy access, flexible, all-inclusive and fixed monthly subscription offers to build their fleet with low mileage vehicles (under 6 months old) that meet all of their business requirements, while liberating them from the need to carry long-term fleet commitments, which is especially useful if their business faces demand seasonality,” says Tinashe Ruzane, CEO and Co-Founder of FlexClub.
There is a diverse range of vehicles available to businesses; everything from sedans and luxury vehicles to commercial vehicles such as utility vehicles and transporters.
An additional benefit for businesses specifically when it comes to car subscriptions, over purchase, is that these subscriptions are tax-deductible for the business and companies can avoid having to carry the risk of higher wear & tear costs. Over and above that, with structured monthly subscription fees, capital otherwise spent on a purchase, can be better used as working capital for the business.
“What’s exciting for us is the great feedback we’re receiving from our early business customers,” says Ruzane. “Several customers now cite saving 75% of the time they used to spend on fleet management, enabling them to focus on their core business”.
“Our vehicle subscription marketplace helps businesses stay in control of their fleet expenses, giving them the freedom to increase or decrease their fleet at will and easily upgrade their fleet whenever they need to” adds Ruzane.
A flexible fleet finance option catering to agile business needs
Businesses of all sizes will appreciate how much less onerous subscriptions are when compared to traditional fleet financing. Earlier stage businesses can now access the fleet capacity they need, despite having less than three years of operating history and audited financials, a typical requirement for business fleet financing. The flexibility to scale the fleet up or down, swap or cancel the service at any time, makes this the perfect solution for businesses seeking more control and resilience.
Business subscriptions on FlexClub will also cater for companies that need temporary corporate branding across their fleet, which is often a priority for SMEs looking to raise brand awareness and customer demand.