FINANCIAL OPTIONS

If your business is looking for a more flexible finance package that meets with your financial requirements, then here at Compact, we can offer you a range of options to suit. We can provide a range of options that may be more tax-efficient and cost effective for your business.

CONTRACT HIRE

Contract Hire is the most widely used form of finance within the materials handling industry. With a Contract Hire agreement the period usually ranges from 2 to 5 years and includes maintenance / servicing of the equipment. This form of finance provides you with one cost to cover both the finance and maintenance of the equipment, enabling you to budget accordingly with no unexpected repair bills.

This method of funding has many benefits, some of which are outlined below:

• Improves gearing and other ratios
• Off-balance sheet lending
• 100% of rentals paid can normally be offset against taxable profits
• Immediate acquisition of new equipment to your specification with no capital outlay
• Full tax relief on all hire charges
• Hire rates are fixed for the duration of the term to ensure accurate budgeting
• Full maintenance can be incorporated into the contract.

LEASE PURCHASE

Lease purchase provides you with ultimate ownership of the equipment at the end of the term. It maximises tax benefits and spreads the cost of ownership over an agreed period. Lease Purchase leaves you as the sole owner of the machine at the end of the lease period. VAT on the capital cost is immediately recoverable. Service and maintenance agreements are arranged independently.

This method of funding has many benefits, some of which are outlined below:

• Use of your equipment will increase productivity and therefore could pay for itself - rentals matched to income
• Allows easy budgeting to allow you peace of mind over your cash flow
• Leaves banking arrangements undisturbed
• Ownership, lease or rental options