Are you unsure of the finance options available and the benefits that finance offers?
Some form of asset finance is generally the most cost-effective way of replacing an aging forklift truck fleet. There are a number of forklift truck finance solutions available but before deciding upon the most suitable equipment financing solution, it is always advisable to seek expert advice.
Our aim will always be to provide your business with a forklift finance solution that is most cost effective in meeting your business needs. Investing in new assets like forklift trucks can be a big decision for any business, and it makes good sense to think about how best to finance your investment.
What are the main forklift finance options available?
Although you won’t end up owning the truck if you opt for a contract hire arrangement, there are several reasons why this may be the right option for you:
- Because contracts are for specific terms, you know exactly what you have to pay and when – meaning you can plan ahead and control your costs.
- You receive a complete package including delivery, maintenance, service and repairs. This translates to less worry and less expense ongoing.
- When it comes to balancing the books, outstanding rentals are not shown as liabilities on your balance sheet, so will have no impact on your debt-to-equity ratio.
- It’s tax efficient – all the rental you pay can be offset against tax.
With hire purchase, you own the truck at the end of the agreed term, at which point you can either continue to use it or sell it on. And there are other advantages, too:
- The fixed term contract again means you know what you have to pay and when, so you can plan ahead and control costs.
- The deposit is negotiable, allowing you to reduce what you pay up front – and freeing up capital for other parts of your business.
- You can claim tax allowances against the hire purchase.
With a finance lease, you keep responsibility for the maintenance, repair and service of your vehicle, as well as insurance costs. That needs to be weighed up against other factors – particularly flexibility – that go in its favour:
- At the end of the lease term, you can either continue using the truck (for which you pay a nominal lease) or sell it on and receive most of the sales proceeds – in the form of either a rebate or a deposit on your next purchase.
- All the rental you pay is allowable against tax, so again, this option is tax efficient.
The team at FTW – The Forktruck Warehouse have years of experience sourcing asset finance for a variety of businesses. We can help your business develop, supporting you in financing new assets, or replacing old and obsolete assets that might be holding your business back.
We pride ourselves on understanding any business sector, whether it’s manufacturing, retail distribution, logistics or many more.
Want to find out more about the forklift truck finance options available for replacing your fleet? Get in touch and explore your options.