What are the different types of finance available?
Contract hire is one of the most popular ways to finance materials handling equipment and provides use without the worries of ownership, depreciation and maintenance.
- All-inclusive rentals: maintenance or service can be incorporated
- Low initial outlay: VAT is payable on each rental, increasing cash flow
- Equipment can be run on, upgraded or returned at the end of the agreement
- Off balance sheet funding increasing return on capital
- Rentals may be allowable against taxable profits**
Lease purchase is a type of hire purchase, providing you with ownership at the end of the term of the finance agreement.*
VAT is payable upfront and the equipment will appear on your balance sheet.
- Preserves working capital including cash and bank facilities such as an overdraft
- Regular payments enable effective forecasting and cash flow management
- Finance agreements are term facilities and cannot be cancelled by the finance provider, unlike an overdraft*
- The term of funding can be tailored to mirror the useful life of the equipment, normally up to 7 years
- Interest rates are set at the beginning of the agreement