What Are The Main Benefits of Contract Hire?
Release Capital?- If you are currently purchasing equipment through your own funding, you are inadvertently tying up a valuable proportion of your company's financial resources. Contract hire releases these funds for more profitable use.
Accurate Budgeting?- With contract hire, all cost are calculated by experts and built into a fixed monthly payment. Equipment costs can be forecast accurately for up to five years or even longer. Paperwork is almost eliminated and budgets tightly controlled.
Improves Cash Flow?- Contract hire will improve your company's cash flow through low initial outlay.
Tax-Efficient?- 100% of rentals paid can be offset against taxable profits.
Off Balance Sheet Funding?- Contracts classed as an operating lease may be able to be put 'off balance sheet', which means that the items of equipment do not show as depreciating items on your balance sheet. Rentals are classed as a revenue expense and are in the profit and loss account.
Reduces Administration?- Are your management and staff currently weighed down with time consuming administration? Contract hire releases them from this burden, so they can achieve more profitable objectives. Contract hire significantly reduces paperwork.
Peace of Mind?- With monthly payments fixed over the entire contract period and a range of optional extras, contract hire takes away the worry and trouble of managing your equipment.
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