Contract hire is widely seen as the most popular way to operate materials handling equipment. Customers pay a fixed monthly rental that includes maintenance and servicing.

Contract hire is generally used by businesses that want to;

• Fix their materials handling costs for up to 7 years
• Off-set 100% of rentals against taxable profits
• Take advantage of off-balance sheet funding
• Enjoy usage benefits without ownership risks
• Use their cash in other areas of the business

With contract hire, customers have no need to;

• Budget for unexpected maintenance costs
• Tie up cash in depreciating assets
• To pay big deposits or VAT on delivery
• To constantly negotiate servicing costs
• To borrow funds on an overdraft facility

The longer the commitment, the lower the rental rate. Long term contracts are for 3 – 7 years with 5 years being the most popular. During the Contract Hire period we are able to offer an option to up-grade, should your needs change or a different specification is required.

The agreement runs for the specified period and at the end of the contract the equipment can be collected and a new truck on a new contract can be supplied, or the contract extended at a lower rental rate.

A lease purchase contract allows the buyer to purchase the truck for a fixed monthly fee over a predetermined period. This allows your Company to retain capital and use it for other purposes.

For tax purposes, the hirer is considered to be the owner from day one and can claim available tax allowances and off-set interest charges. The asset is also shown on the balance sheet. At the end of a Hire Purchase agreement you retain ownership of the equipment. During the agreement, apart from claiming Capital Allowances, all the interest payable can be offset against taxable income.

Sometimes known as an Options Lease. If you wish to use the equipment without owning it, an Operating Lease could be what you need. The rentals are fixed from day one and can be significantly lower than Hire Purchase. At the end of the contract the machine will either be returned or retained at a lower rental rate. All rentals paid during this agreement are totally allowable against taxable income.

Should you require a machine on a short term basis from four weeks onwards we can supply one. This could cover for peak periods, seasonal requirements or a breakdown of your existing equipment. These are supplied from our extensive short term hire fleet which covers a variety of forklifts.  The hire rate includes all maintenance and servicing.