Contract Plant Rental looks at the key points of Plant hire versus direct purchase
So what are the main differences to weigh up when looking at plant hire versus direct purchase. It’s important to compare so you can make the best decision for yourself or your company.
Tax Benefits
Capital gains tax and similar surcharges can weigh heavily upon a company, particularly if the firm in question is operating within tight budgetary constraints. Plant hire companies are able to provide a decisive edge in terms of fees and rental costs. Funds that would have otherwise been devoted to satisfying taxation requirements can instead be channelled directly back into the core operations of the business.
Saving Space
Storing large pieces of plant equipment such as waste tanks, portable water systems and fuel cubes can prove to represent a costly logistical concern; particularly if you do not possess sufficient on-site space. In terms of professional plant equipment hire, you can simply return the product to the supplier when it is no longer needed. Storage problems are therefore removed from the equation.
Unnecessary Purchases
There are many instances when a specific category of equipment needs to be implemented for a one-off task or for only a few months at a time. It makes little sense to purchase the unit outright, as it could soon represent yet another piece of machinery that is obsolete in regards to your needs. Hiring out this very same equipment enables you to obtain the right services at the appropriate times.
Ongoing Costs
Equipment Contract Hire also allows you to have all the benefits of having new equipment over an agreed period of time and mileage. This gives you cost-effective access to new equipment and none of those large drops in value normally associated with owning a new vehicle outright. You also have peace of mind that service maintenance, warranty issues and repairs are part of the hire cost.
More Attractive Balance Sheet
One of the big benefits of contract hire to a small business is that there is no large capital outlay for equipment that could damage the company’s balance sheet. While your business needs certain equipment, through a contract hire agreement only the rental charges will be shown on the balance sheet which should make it more attractive.
Contract Plant Rental can provide contract plant hire for virtually any machine, including equipment and attachments, from excavators to material handlers. A key benefit is that we can offer fixed costs for a fixed period, allowing your business to accurately budget and maintain good cashflow and balance sheets.
