Forklift Rental and Finance
The decision to purchase or hire equipment can sometimes be daunting. We have a team of finance experts available to explain the benefits of lease purchase, finance lease and contract hire and tailor a package that is the most advantageous for your business. You will find our contract hire and leasing options competitive financing solutions.
Contract Hire Forklifts Trucks
A large proportion of new forklift trucks are supplied in the UK via long term contract hire which offers a fixed rental price over an agreed term including full maintenance. This guarantees piece of mind and allows you to budget your fleet total expenditure. Grant Handling offer flexible contracts built around your required specification, cost and term requirements.
Forklift Truck Finance Lease
Not too dissimilar to contract hire, a finance lease involves an initial rental payment, and then ongoing regular monthly payments for the remainder of the contract. The difference comes at the end of the agreement. This is when the ‘lessee’ is responsible for selling on the forklift to a third party and settling the contract with the ‘lessor’ through a balloon payment – the funds raised by the sale of the vehicle.
Benefits of Contract Hire and Finance Lease for Forklift Rental
Conserves cash for your business
Financing enables you to acquire equipment, without having to make a lump sum payment allowing you to invest cash elsewhere in your business. A fixed rental cost also allows you to budget more accurately thus allowing for more accurate cash flow projections.
When opting for a contract hire agreement, the rentals can be deducted as pre-tax business expenses. Where the monthly payment can be offset against taxable profits, the business will see a reduction in the tax it pays. If your business is VAT registered then it can reclaim 100% of the VAT on the monthly forklift rental cost if it’s used exclusively for business.
Unlike capital expenditures financed by borrowing, a contract hire facility is technically “off balance sheet”. This means that the forklift isn’t sitting on your company’s books as a depreciating asset.
Spread the payments
After the initial forklift rental payment, the cash outflow relating to the finance lease is spread over several years. This helps maintain a steady cash flow, as there are fewer one-time significant lump payments.
Forklift rental payments are fixed. This makes it easier to produce cash flow forecasts, allowing for easier budgeting.
At a time where the UK is experiencing record levels of inflation, one cost that will be consistent for you is the monthly payment of your forklift rental. In fact, inflation will lessen the cost of future lease payments, as the payments will be made with ‘cheaper’ pounds.