H&F have a close working relationship with several leading finance houses. This enables us to offer very competitive and individually tailored finance packages to our customers. The two main finance types offered to H&F customers are:
Contract hire with maintenance
Contract hire is a fixed term agreement, usually between 3 and 7 years with monthly rental that include forklift maintenance, servicing and repairs. 100% of the rentals paid can be offset against taxable income. This is a one-stop solution and is widely viewed as the most hassle free, cost effective and tax efficient method of running forklifts. You can enjoy simple budgeting and just hand back the trucks at the end of the term. Agreements that qualify as ‘operating leases’ are not shown as liabilities. So they don’t adversely impact on gearing ratios within your accounts.
This offers the end user eventual ownership of the equipment after spreading the cost and interest over an agreed period (normally 2 to 7 years) through fixed monthly payments. This asset is put on your balance sheet and offset ‘capital allowances’ against taxable income at a rate of 25% per annum on the reducing balance. (‘Small companies’, as defined by the DTI, can offset 40% of the equipment value in the first year). All of the interest charges can be set against taxable income. At the outset of the agreement you pay the total VAT on the equipment cost, together with any deposit. This is ‘on balance sheet’ funding so the outstanding payments are shown on your balance sheet as a liability. Maintenance and repairs are not included in the cost.
So if you don’t want to place constraints on your cashflow with the costs of material handling equipment why not talk to H&F and ask us if we can help.
We provide forklift finance to Staffordshire, South Cheshire, Macclesfield, Congleton, Crewe, Nantwich, Sandbach, Stoke, Stoke on Trent, Newcastle Under Lyme, Uttoxeter, Derby, Shrewsbury, Telford, Burton.