Choosing the best method of equipment financing is not as easy as it looks. Leasing your Lift Truck offers several important advantages to your business.
- Purchasing equipment using capital funds or borrowings result in a loss of interest
- Leasing is a practical alternative to purchasing
- Lease financing allows your business to obtain equipment without buying it outright or borrowing money
- Leasing allows you to pay for equipment over it’s useful and income-producing life
- Leasing preserves cash, Fixed monthly payments allow you to obtain equipment without large initial cash outlays
- A lease is not a loan, but an option through which you get the equipment you need in exchange for fixed monthly rental payments
- Lease payments are fully deductible operating expenses
- Leasing can be structured to provide you with the option to upgrade to new equipment at any time over the life of your lease
An On-Balance-sheet facility without a fixed maintenance obligation. Especially interesting for companies that have their own service engineers.
The monthly payments cover the whole of the capital outlay of your truck. Rentals are not reduced because there is no residual value. You are the owner of the equipment.
Operational Lease/Contract Hire
An Off-Balance-sheet method of finance. Payments usually include all maintenance and repair. These easy to budget rental payments that include VAT and are 100% tax deductable as an operating expense. Amvar will guarantee a residual value which reduces the rental payments. You are not the owner of the equipment.