Recycling Equipment – Lease or Purchase?
Now here’s a question. When it comes to recycling equipment do you lease or do you buy? What is the best option? And what is best for your business?
Of course I think this depends on how much waste you (as a company) generate versus how much you are willing to spend on recycling equipment.
I suppose there are pros and cons to both leasing and purchasing items and there are many businesses out there that offer rental and purchasing and many industries who do either or.
Leasing or renting waste management or recycling equipment does allow you to free up working capital for use in other areas of the business. Also seeing as this company offer flexible lease and rental packages and contracts that are tailored to your requirements: either annual rolling, three or five year contracts they do seem like quite bespoke arrangements.
Also hire purchase does spread the cost over a longer period, releasing cash flow. Again, a good point.
They have comprehensive maintenance packages available and a complete range of waste management equipment.
All valid, all good points indeed.
At Mardon they offer a comprehensive maintenance package too, and not just on equipment bought from Mardon. The qualified team of service engineers don’t only look after their own balers and waste compactors, they can look after other recycling equipment too. From one-off overhauls to regular scheduled service visits, break-downs or even complete machine refurbishment, Mardon’s competitive pricing makes them a simple solution. They do emergency call outs and fully maintained cover, which is brilliant if and when you’re in a bit of a sticky situation.
There are also many options to choose from at Mardon, too, from hiring to buying.
If you are contemplating obtaining a new piece of recycling equipment, Mardon have many finance options to suit any customers’ needs.
First is Outright Purchase. If money is no problem then you could opt for an outright purchase and with the HMRC incentive of Annual Investment Allowance (AIA). The AIA means that you can claim your entire expenditure on qualifying items, up to £500,000.00, against this allowance, thus reducing your tax bill. I mean, that’s good business sense no?
Second is Lease. For a lot of businesses it makes financial sense to use a Finance Company and Lease new equipment. This not only saves your capital and improves your cash flow for other essential business expenses such as stock, wages, advertising and so on, but the monthly payments you make are treated like rental payments which are an allowable business expense. Therefore if your business is making profits you could reduce the amount of profit by the amount of the rentals you pay each year which in turn reduces your tax bill.
And the last option is Hire/Rent. Depending on whether you are looking for a new or a refurbished machine, Mardon also have the ability to offer a hire/rental package to suit your needs. With their own fleet of machines on the books they are capable of offering short or long term hire/rental packages.
I suppose the main factors here are money and how much waste is generated. Picking up the phone and speaking to one of the team at Mardon will help no end in getting that decision made. And in the long run, so long as you are minimising waste with recycling equipment, both Hiring/Leasing and Buying are the better options than doing nothing at all.