A new initiative has been launched by the country’s fourth largest lease provider, Lombard, in which it is offering businesses competitive short-term rental rates that could put it in direct competition with rental companies.

Provided businesses, which do not have to be existing Lombard customers, commit to a rental of more than 83 days, they can hire cars from Lombard from as little as £10:59 a day. Vans are available from £11.79 a day.

This is around 25% cheaper than Enterprise Rent-a-Car – Lombard’s rental provider – quotes over the phone for its longest–term rental of 28 days.

Enterprise does offer a ‘month or more’ service for business rentals which offers more competitive rates, but Lombard’s new offering will still prove very attractive.

“We provide rental services to Lombard and it is up to them how they sell that on,” said Spencer King, spokesman for Enterprise.

“We have agreed rates with them and it is up to them whether they escalate them or not. That’s the prerogative of a broker.”

Businesses of any size can avail of Lombard’s deal providing they pass a credit check, have their own insurance or pay for Lombard’s and pay for at least 84 days’ rental regardless of how long they keep the vehicle.

Unlike going direct to a rental provider, Lombard has also fixed its rates throughout the year meaning they are not subject to seasonal increases.

The new Flexi-Rental service offers an “alternative to the long-term commitment of leasing contracts and the expense of short-term daily rental”, said Lombard Vehicle Management MD Stuart Houlston.

“This is a time of uncertainty, and Flexi-Rental means that businesses do not have to make a long-term financial commitment.”

Despite the deal’s attractiveness, fleet managers are advised to explore all options and providers first.

“There is no single solution for everyone,” said Stewart Whyte managing director of Fleet Audits, who points out that with Lombard acting as a broker for vehicle rental there are now “two hands in the till”.

While Lombard partners with Enterprise to supply its with short-term rental, it said the service may be offered through other rental companies, depending on demand.