In South Africa, successful entrepreneurship must thrive amidst unique challenges. Small business owners have to traverse various hurdles in order to overcome financial constraints.
At the heart of many of these challenges comes the need for young enterprises to find reliable transportation - a necessity in a country where resources are already limited. However, as this obstacle continues to throttle many companies, a flexible solution is reshaping the way vehicle ownership is approached - the rent-to-buy car subscription.
At We Rent Cars, we understand the vital role that transportation plays in the success of a small enterprise. That’s why we offer a rent-to-buy model that addresses the issues surrounding traditional car ownership.
Let’s take a deeper look at how a rent-to-buy subscription empowers small business growth in South Africa.
3 Challenges for Small Businesses in South Africa
South Africa has a dynamic and unpredictable business sector. Entrepreneurs in the country face multiple challenges that could hinder growth - access to reliable transportation being one of the focal issues.
Here are three challenges that directly impact access to transportation for small companies:
1. Limited Access to Capital
For many small businesses around the country, securing the necessary capital to purchase vehicles can be an outright daunting task.
Traditional financing options come with stringent requirements and high-interest rates that makes securing a vehicle inaccessible for entrepreneurs operating on a limited budget. As a result, many enterprises may find themselves unable to secure reliable transportation to deliver goods and services.
2. High Upfront Costs
Another issue that goes in tandem with limited access to capital is the high upfront costs associated with purchasing a new vehicle outright.
From down payments to registration fees, maintenance, and insurance premiums, the financial burden of acquiring a company car places a large strain on small businesses and often requires cash flow to be reassigned across the board.
3. Logistical Constraints
Lastly, South Africa is a country of interesting and often challenging geography. Small businesses often operate out of both rural and urban areas around the map, presenting unique challenges when it comes to acquiring a vehicle.
We Rent Cars has dealerships and workshops across the country, making access to a rent-to-buy car far less strenuous, no matter where you or your company may be located.
How Rent-to-Buy Subscriptions Support Small Businesses
Rent-to-buy car subscriptions, offered by companies like We Rent Cars, serve as a much needed lifeline when it comes to vehicle procurement for small businesses in South Africa.
Here’s how these subscriptions provide a flexible and cost-effective alternative to traditional vehicle ownership:
1. Lower Capital Investment
Unlike traditional ownership, rent-to-buy subscriptions often require much smaller deposits and down payments. Small businesses who take this route to car ownership can acquire reliable transportation without depleting their capital reserves.
2. Predictable Costs
By requiring fixed monthly payments, rent-to-buy car subscriptions provide small businesses with predictable costs that are easy to budget for. This eliminated the uncertainty associated with variable expenses and unexpected financial burdens that comes with buying and owning a car outright.
3. Flexibility
Small businesses evolve over time - that’s a given, especially if growth occurs. The needs of a small business, and the type of vehicle they require to operate efficiently will evolve too.
A rent-to-buy subscription, like that offered at We Rent Cars, provides unparalleled flexibility in terms of the vehicle you choose to subscribe to. At We Rent Cars, for instance, customers always have the option to upgrade or change the vehicle they are renting.
4. Maintenance and Service Benefits
Many rent-to-buy subscriptions come with various benefits that car owners would have to seek out by themselves, should they own their own vehicle.
We you subscribe to We Rent Cars’ rent-to-own subscription, for instance, you’ll receive the following benefits:
- A tracking device
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Yearly licence renewal
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24h roadside assistance
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Comprehensive insurance
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Minor services every 10 000 km for 54 months
5. Risk Mitigation
Traditional vehicle ownership often comes with a host of hidden risks like vehicle depreciation, resale value fluctuations, and market uncertainty. By opting for a rent-to-buy car subscription small businesses can easily sidestep and mitigate these financial risks.
We Rent Cars - Empowering Growth Through Mobility
We now understand the challenges that small businesses in South Africa face when dealing with acquiring reliable transportation. We also understand how rent-to-buy car subscriptions, like the one offered by We Rent Cars, provides a real solution to these challenges.
Contact We Rent Cars today to get your enterprise on the road.