Compare your costs of Purchase to Hire
By Clean Sweep @ May 24, 2010
in Road Sweepers Sweeper Hire Industry News Company News Purchase or Hire
There are many sound financial reasons to hire equipment instead of purchase.
It can be difficult however to work out the comparison, taking utilisation levels, service, transport and depreciation into account.
Clean Sweep UK are delighted to bring you a complete cost calculator that will allow you to compare costs for both options.
We hope that you find it useful.
Click on the link below to start comparing or read on for more useful information:
Cost Calculator
There is much evidence that the economy is now moving out of recession. Companies who have pared back costs and protected cash flow are rightly looking to the future. Now is the time they could build market share, capitalise on their competitors who may not have been so fortunate.
Speed is of the essence as credit lines begin to relax and interest rates remain low; but how to secure funding to invest in the future?
One option is to hire capital equipment as opposed to purchase. There is no capital outlay but more importantly no balance sheet effect. Unlike capital expenditure, financed by borrowing, there is zero effect on balance sheet ratios such as debt to equity. This means no impact on other credit lines, such as loans and overdrafts making further borrowing easier.
Furthermore fixed monthly payments, including all important service costs, are protected from rising interest rates. You will always know the exact amount of future payments, making budgeting and cash flow projections simple.
Such payments can be deducted as pre-tax business expenses reducing tax liability.
'The end to rapidly depreciating assets and dreaded obsolescence.'
Thank you for taking the time to read this blog and if you would like further information please contact us on 0844 704 4999 or email us.
We strive to be informative and provide the best service possible. Let us know how we do?
It can be difficult however to work out the comparison, taking utilisation levels, service, transport and depreciation into account.
Clean Sweep UK are delighted to bring you a complete cost calculator that will allow you to compare costs for both options.
We hope that you find it useful.
Click on the link below to start comparing or read on for more useful information:
Cost Calculator
There is much evidence that the economy is now moving out of recession. Companies who have pared back costs and protected cash flow are rightly looking to the future. Now is the time they could build market share, capitalise on their competitors who may not have been so fortunate.
Speed is of the essence as credit lines begin to relax and interest rates remain low; but how to secure funding to invest in the future?
One option is to hire capital equipment as opposed to purchase. There is no capital outlay but more importantly no balance sheet effect. Unlike capital expenditure, financed by borrowing, there is zero effect on balance sheet ratios such as debt to equity. This means no impact on other credit lines, such as loans and overdrafts making further borrowing easier.
Furthermore fixed monthly payments, including all important service costs, are protected from rising interest rates. You will always know the exact amount of future payments, making budgeting and cash flow projections simple.
Such payments can be deducted as pre-tax business expenses reducing tax liability.
'The end to rapidly depreciating assets and dreaded obsolescence.'
Thank you for taking the time to read this blog and if you would like further information please contact us on 0844 704 4999 or email us.
We strive to be informative and provide the best service possible. Let us know how we do?
