SCAFFOLDING EQUIPMENT – IS IT BEST TO HAVE AND TO HOLD?

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Deciding whether it’s better to hire or buy equipment is a question faced by many businesses each day in the UK.  However, when the cost of financing the equipment massively outweighs the costs of hiring, it becomes, to use a cliché, a ‘no-brainer’.

 

With savings in the region of 25-50% on the monthly outgoings, choosing to finance the scaffolding equipment in comparison to hiring is starting to become a sensible option for a growing number of PFC’s scaffolding company clients. Factors such as the amount being funded, and the term of repayments (we can offer from 6 months to 60 months) will determine the saving, but the fundamental advantage is that funding the kit instead of hiring is not only cheaper, it is also a wiser use of your essential business capital.

 

Opting for the finance lease credit facility, as most do, will offer benefits such as accelerated tax relief and route to ownership of the scaffolding equipment at the end of the term. VAT is spread throughout the term, instead of being paid up-front, which is yet another way of strengthening your cashflow position.

 

More and more of the funders on our panel are agreeing to finance this asset, an asset which traditionally was hard to get funding for. By providing accounts, company bank statements, and a copy of the equipment invoice, the majority of our clients have successfully financed the investment into new scaffolding equipment, rather than continuing to hire.

 

PFC resident expert scaffolding financier (Harvey Peers) arranged over £200,000 of scaffolding finance in August; his clients, in addition to reducing their operating costs, now have more assets and value in the business which puts them in a strong position for onward growth and expansion.