Flexible finance for operators
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• A new company, formed to provide finance packages exclusively for the transport industry, is aiming to give more options and greater flexibility than the banks.
KeyScot is a joint venture between Key Leasing of Cheadle, Cheshire and Royal Bank Leasing, the leasing arm of the Royal Bank of Scotland.
The company can provide an operating lease package tailored to a fleet customer's individual needs by offering a flexible hire agreement.
Director of the firm, Ray Hill, says, "KeyScot simplifies not only the financing but also the total vehicle fleet planning of a company. We provide a single contract which gives the freedom to plan optimum financial and operational vehicle life. This removes the uncertainties about holding costs, sale values, vehicle life and timing.
Instead the company can know in advance exactly what options and costs will apply should its plans change in the future."
A KeyScot agreement can qualify as an operating lease within the new SSAP21 accounting regulations, giving the advantages of simplified accounting procedures and 'off balance sheet' financing for new and existing vehicles.
Refurbishment can also he included in the package. Says Hill, "This is particularly useful for trailers where a significant increase of life can be achieved. Savings can be made by teasing refurbished used vehicles and trailers for shorter term contracts."
KeyScot has experience of supplying vehicles, including refrigerated units, in that way. In the case of tankers the company is prepared to finance the tank separately, over a greater period, to cover its life on a second chassis.