Flexibility and Choice.
If your business needs to invest in additional trucks or is replacing obsolete or uneconomical equipment you may have also decided not to tie up your hard-earned cash or bank facilities. Even cash-rich organisations will often utilise external finance and preserve cash, which can often be better spent elsewhere in their business. A hire purchase, leasing or rental facility from Amvar Handling Solutions can provide a number of commercial benefits, including:
- Preservation of cash - which can often be better utilised as opposed to being tied up in depreciating assets.
- Simple budgeting - with fixed monthly payments.
- Flexible - with beneficial end of contract options.
- Less administration and hassle
- Easy to set up - with simple customer agreements.
Here is a guide to the types of finance we offer:
Contract Hire / Rental
- A simple contract where you pay a fixed monthly or quarterly rental for the use of the truck, which can be returned at the end of the agreed period with no further obligation
- Low initial outlay, which is usually just the first months rental and VAT is payable on the rentals as they fall due
- 100% of rentals paid can normally be offset against taxable profits
- Rentals usually include maintenance/servicing of the forklift truck
- An extension or continuation of rental at the end of the term is normally available
- Equipment can be upgraded at any point and agreements can be settled early if required
Hire Purchase / Lease Purchase
- With a Hire Purchase agreement, instead of paying the entire cost of a truck at the outset, the cost is spread, together with a clearly set out interest element, over a fixed period of time with fixed monthly or quarterly payments.
- A deposit may be paid at the outset to reduce the payments and interest charges. Full VAT on the truck cost is normally payable at the outset.
- Ownership is obtained at the end of the agreement by paying an Option to Purchase fee.
- A normal service or maintenance agreement can be set up to run concurrently with the finance agreement if required.
- The truck is treated as owned from the outset for tax purposes and all interest charges can normally be offset against taxable profits or the asset can usually qualify as part of your AIA (annual investment allowance)
The truck can be upgraded at any point and agreements can be settled early if required.