9 February 2015
Help your company expand with contract hire
The planned expansion of many businesses in 2015 is stimulating the need for new vehicles amongst companies.
With enticing monetary benefits, find out how contract hire can assist your firm in meeting its objectives here…
According to a recently published report, expansion is a key priority for businesses in 2015. Plans that had been previously stored away until the economic climate improved are being dusted off with firms anxious not to miss their opportunity. At the same time vehicles that may have been retained longer than companies would have ideally wanted need to be changed. As a result, many companies that have previously purchased their cars are turning to leasing.
Contract hire offers an alternative source of finance and leaves a company’s money in the coffers for investing in expansion and development of the core business. Where immediate cash injection is required, for plans such as expansion, vehicle fleets may be sold to release the equity in them and then leased back.
Some of the monetary benefits of contract hire are:
- Improved cash flow by covering depreciation of vehicles over contract term
- A large proportion of or, in some cases, all rental charges are allowable against Corporation Tax
- A minimum of 50% of VAT on all rentals can be reclaimed
- An improved ‘rate of return’ on capital employed
- Utilising the buying power Activa have on new vehicles, parts, and labour
If you would like to investigate further potential benefits of contract hire or sale and leaseback, please contact Activa’s team of experts on 01908 288400.