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This is not a way of obtaining no-deposit hirepurchase However,
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before rushing off to obtain vehicles through such an agreement it is as well to consider what kind of companies or individuals might successfully complete a finance leasing agreement.
First it should be understood that this is not a way of obtaining a no-deposit kind of hire purchase without the actual ownership.
The finance companies will be interested only in approaches from financially well-based organizations. It will be necessary to demonstrate a record of responsible — though not necessarily sophisticated — management over a reasonable period of, say, four or five years with proper accounting. Thus, it is usually the medium to very large companies to which the finance companies are attracted. Those who are compelled to obtain vehicles other than by purchasing them because they have not the capital to do so should consider other alternatives — the finance lease is not for them.
Companies which are seeking an alternative to buying their own vehicles because they wish to use their available capital in other ways or because they feel they already have sufficient in the way of assets are another matter.
Because finance leasing does free available capital for other purposes it is thus doubly attractive to own-account operators who wish to devote capital to developing their main activity. There is no reason, however, why the hire and reward haulier should not adopt this method of vehicle provision.