Benefits to corporate customer
No capital expenditure
On taking vehicle on Operating Lease, there is no capital outflow towards the purchase of the vehicle. Avis lease makes the investment as per the corporate customer’s requirement .
Off Balance-sheet transaction
Taking vehicles on operating lease has no affect on the balance sheet of corporate and is termed as off balance sheet transaction. This helps corporate in keeping its books light while availing usage benefits from leased vehicles. Vehicle does not show as an asset on the balance sheet, hence improving the financial ratios like return on assets, gearing ratio etc.
As the leased vehicle would be completely managed by Avis Lease for the entire lease tenure, entire administrative time and money required to manage the fleet would be saved.
No additional operational cost
Lease rental payments are fixed for the entire lease tenure and all the surprises/fluctuation towards the maintenance expenditure would be taken care by Avis. This helps corporate clients with accurate budgeting on operational cost leading to better cash flow and cost control.
Optimum Cash Flow
Entire lease rentals paid by corporate customers can be claimed as expense providing a tax efficient fleet usage model