Here’s how you can use the power of your fleet to inject more cash back into your business
It’s been quite a year with you and your business getting waffled by dozens of motivational, logistical, and financial challenges – one after another. With everything you’re facing, having capital at the ready is a must – to either fix a problem or invest in an unforeseen growth opportunity.
If you’re wondering where you could scrounge up cash at the moment, your liquidity sources may be parked right in front of you! And you don’t even have to sell them. Remarketing your fleet vehicles is always an option, but that isn’t necessarily the best choice if your volume decrease is temporary. Downsizing can hurt your performance and agility if you’ll need to quickly acquire replacement vehicles when your business is ready for them.
So how can you free up equity while also maintaining a fully operational fleet?
What if you tapped into the capital held by your fleet vehicles, while still using them to serve your customers? Imagine what you could do with that cash. You could:
- Ward off challenges.
- Reinvest in your business.
- Serve your customers.
- Stay competitive.
Your fleet is an investment, and there’s more than one way it can power your team and maintain your value in your industry.
Try some creativity
A sale leaseback solution could be the answer to your questions. You simply sell your owned vehicles to a funding partner – preferably one with access to competitive funding rates – who then leases them back to your company on terms that work best for your financial strategy.
Your vehicles can stay on the road, keeping your business moving and your customers happy. Meanwhile, your company can use the sale proceeds to improve short-term liquidity by injecting more money into the business, filling capital needs, and managing monthly liabilities. Your long-term financial outlook will likely improve as well.
Here’s how two companies used the liquidity in their fleets to drive cash flow back into the business:
❶ An oil and gas company was using ARI for services while leasing its vehicles from another fleet management company. The customer needed additional cash for their monthly budget, but could not afford to reduce their fleet size. ARI purchased more than 350 of their vehicles from the other fleet partner, and leased the vehicles back to the customer at a reduced rate. The energy company was able to enjoy lowered monthly costs while focusing on their customers thanks to the immediate equity in their fleet budget.
❷ A telecommunications company with 5,000 vehicles always purchased their vehicles outright, but found themselves looking for capital to invest in core improvements. They had tightened their budget as far as they could, but still needed more cash to fund new technologies. They had never considered a sale and leaseback option, but ARI’s lease portfolio experts showed them how to achieve a $30M injection of cash through a sale and leaseback of their fleet. Confident to leap outside the box, they used the cash proceeds to fund their investments and also procure newer vehicles with lower maintenance costs, positioning them for a brighter future.
Yes you can!
Consider all the creative ways you can support your company by unlocking the equity in your vehicles. More cash to fill capital needs, more flexibility each month, and more ways to keep your business moving forward.
Visit www.arifleet.com and click on “Why Change” to watch our “Funding Outside the Fleet Box” customer story video, and download ARI’s free Sale and Leaseback e-book.
