Introduction

When it comes to acquiring equipment for your business, the decision between hiring and buying can have a significant impact on your operations and financials. While purchasing may seem like the conventional choice, there are numerous benefits to be gained from opting for forklift hire. In this article, we will explore the advantages of hiring a forklift over buying one, ranging from maintenance and financial considerations to operational efficiency and tax benefits.

Maintenance and Repairs

One of the major advantages of hiring a forklift is that it often includes general maintenance and repairs as part of the package. Rental companies typically take care of routine servicing, repairs, and maintenance, ensuring that your forklift is in optimal condition. This relieves you of the burden of managing these tasks and reduces downtime, allowing your business to operate smoothly without interruptions.

Fixed Hire Rate

When you choose to hire a forklift, the hire rate is generally fixed for the term of the agreement. This means that even if wages or inflation increase, your hire rate remains the same. This stability in cost allows you to accurately forecast and plan your budget, avoiding unexpected expenses associated with maintenance or unexpected breakdowns.

Preserving Working Capital

By opting to hire a forklift instead of purchasing one, you retain your working capital within your business. Forklifts can be significant investments, and allocating a large sum of money towards buying one can strain your financial resources. Hiring enables you to utilize your working capital more effectively for other critical areas of your business, such as expansion, marketing, or inventory management.

Priority Service

When you hire a forklift, rental companies often prioritize their clients in terms of repairs and technical support. In the event of a breakdown or malfunction, you can expect prompt attention and quick resolution to minimize any disruptions to your operations. This priority treatment ensures that you can maintain productivity levels and meet your business objectives efficiently.

Access to Latest Models and Compliance with Standards

When you choose to hire a forklift, you have the advantage of accessing the latest models that comply with current safety standards, such as those set by Australian Standards. This ensures that you have access to technologically advanced equipment that enhances performance and safety while adhering to regulatory requirements. Upgrading to newer models can be costly when purchasing, making hiring a more cost-effective solution.

Favorable Payment Terms and Cash Flow

Hiring a forklift often involves making monthly payments, which can be beneficial for managing your cash flow effectively. Rather than facing a substantial upfront cost, monthly payments spread out the financial commitment, allowing for better financial planning and improved budget management.

Tax Deductibility

In most cases, the hire charges associated with hiring a forklift are fully tax deductible when used exclusively for business purposes. This provides an additional financial advantage, reducing your taxable income and potentially lowering your overall tax liability.

Non-Bank Funding and Lending Capacity

Opting for hiring instead of purchasing does not impact your lending capacity. Hiring is considered a form of non-bank funding, meaning it does not tie up your credit or affect your borrowing ability. This flexibility allows you to maintain financial freedom and explore other financing options for strategic business needs.

Conclusion

When it comes to acquiring a forklift for your business, the benefits of hiring over buying are undeniable. From the convenience of maintenance and repairs to fixed hire rates, the preservation of working capital, and access to the latest models, hiring offers flexibility and financial advantages. Moreover, the tax deductibility of hire charges and the non-bank funding nature of hiring ensure that your financial resources remain unhindered, allowing you to focus on growing your business. By carefully considering these factors, you can make an informed decision that optimizes efficiency and supports the long-term success of your operations.