Getting commercial van finance? If you do, then you need to consider important advantages and disadvantages of getting commercial van finance.
Commercial van finance can come as a need for some businesses, but nevertheless, it is a must that you consider important factors to ensure that you are getting exactly what you need, nothing else.
Before going any further, considering the advantages and disadvantages of getting commercial van finance is a must before you formally and finally decide getting it.
Advantages of getting commercial van finance
You need not to spend all your capital in one sitting, thus giving you the chance of using it for other important expenses in the future
In business, especially to those who are starting up, expenses may come the least time you expect it, thus that being said, you would not want to spend everything you have, leaving some on your bank account is necessary. One of the things you can do, is instead of paying your commercial van in full, might as well get commercial van finance.
You can start your business immediately even if you have no enough capital yet on hand
You may be thinking twice of not starting your business yet, due to the fact that you do not have enough money yet on hand to buy your commercial vehicle, van in particular. By getting commercial van finance you can start instantly and pay the van of your choice in staggered payments.
Getting commercial van finance is a lot better than renting
Of course, paying for something that you can call your own in the future is a lot better than renting and paying yet you wont get anything in return other that rental of the van.
Disadvantages of getting commercial van finance
In the event that you forget paying, huge fees will come your way
You have to be responsible once you decide getting commercial van finance, any time you failed to make your payment, may it be unintentional since you forget paying or intentional, since you have no money to pay yet, interest and charges may come your way and this is something that you would never want to happen.
When unfortunate circumstances arise, hopefully none, and you can’t pay your amortization, your van will get repossessed
When things get worse, chances of your van being repossessed is possible. You would not want this to happen, but in business, you are gambling, you may win but you may sometimes lose. Buying your van in cash, may be suitable for some purpose.