Hiring or Leasing Scaffolding Materials
When we speak with customers about leasing new scaffolding materials for their business, they often mention how their scaffolding supplier has also offered a hire or a hire-to-buy option.
WestWon have written a short guide outlining details on each type of arrangement. We help you make an informed choice by offering guidance so you can make the best decision for your business.
Scaffolding Hire
For companies who require materials over a short time period, scaffolding hire is a good choice. You can hire the equipment, pay for it as you use it, then return it once you have finished that project. The reasons for hiring vary from fulfilling a short-term contract, making up for a shortfall in kit, or simply not being able to afford a large outlay for purchasing kit.
Many scaffolding companies may hire materials for longer periods of time, and while seeming to save their company money by not paying upfront for the kit, the equipment will never be an asset that the business owns.
To the scaffolding industry, hire as a service offers many benefits. For example, saving money on vehicles needed to transport the tube and boards, since hired kit can be delivered directly to a site. Companies may also save money by not requiring a yard to store the kit, because the kit supplier will collect the equipment once the hire period is finished from your site. It can be a cheaper option over a short period of time.
Leasing
Leasing is a smart way to spread the cost of equipment over an agreed period from 1-5 years, with low fixed, monthly payments. At the end of the term, you have the option to purchase the equipment outright. This option means you are free to use the materials as you wish. Once the equipment is paid off, you are not only saving money by no longer paying hire charges, but you also have scaffolding working for you and continuing to earn its keep while it is up, which will allow you to become even more competitive when tendering for future contract.
Did you know that leasing is often much cheaper than the cost of hiring equipment? This means your company may be paying a higher amount for equipment that your business will never actually own. Leasing equipment over a 1 to 5 year fixed term means that the rate of interest is cheaper than hiring it. Leasing the same equipment instead could save your company money in the long term.
Leasing also gives the customer additional tax benefits which are not available when hiring equipment. 100% of the lease payment is tax deductible against a company’s corporation tax. This often makes it a better and cheaper deal than not only hiring the equipment might be, but also a better deal than paying cash for it!
WestWon can help discuss your options if you’re interested in discussing the pros and cons of leasing or hiring scaffolding equipment. For more information on leasing equipment for your scaffolding business or to ask for a free quotation, contact us on 01494 611 456 or email scaffolding@westwon.co.uk.
Written by Carl Redding.
