Finance

Contract hire

Contract hire is chosen by a large share of materials handling users. The agreement runs for a set period, with rental and return conditions fixed at the outset.

• Frees up capital for other investments
• Easy budgeting for the upkeep of the truck throughout the term
• Rentals are normally offset in full against taxable profits
• Off balance sheet: the truck doesn't depreciate on your balance sheet
• VAT is paid on each rental, rather than in full at the start

Hire purchase or lease purchase

If you'd rather not spend a large sum at once, hire purchase lets you pay in manageable fixed instalments. The finance company owns the truck until the final payment, when ownership passes to you. Funding is on balance sheet.

• Finance for up to 100% of the purchase price, excluding VAT
• VAT is paid on the rentals, not up front
• At the end, keep the truck for a nominal sum, or sell it and keep most of the proceeds
• You make your own arrangements for maintenance, repairs and servicing

Finance lease

A finance lease is a flexible, tax-efficient way to acquire a truck without using cash reserves. Funding is on balance sheet.

• Regular fixed payments for easy budgeting
• Choose the structure: a flexible deposit, fixed payments and perhaps a final balloon payment
• Additional security is not usually required
• You make your own arrangements for maintenance, repairs and servicing

Tax treatment depends on your circumstances, so check with your accountant. Ask us to set out the options for the truck you have in mind.