Guest Spot: South West Machinery Hire Limited
11 October 2017
To hire or buy? The benefits of machinery equipment hire.
In a tightening economy there are many challenges to contend with; everybody is looking to reduce cash flow and achieve value for money.
Machinery prices have been rising sharply over the past few years, with some tractor manufacturers increasing their prices by over 10% in one year. This can result in increasing amounts of a farm’s capital being tied up in a depreciating asset.
Before spending hard-earned cash to be the proud owner of a shiny new tractor or machine it is worthwhile looking at the benefits of hiring rather than buying.
Machinery hire is becoming an increasingly popular alternative to purchasing and here are just some of the reasons why:
1. Cost: One of the most important factors at the forefront of every business’s decision-making process. By hiring machinery you only ever pay for the time you need it, whether that is a few days or on a long-term basis. Just hire it for your requirements and then send it back when you’re finished. With far less up-front outlay, hiring machinery is a useful way to free up working capital for use in other areas of your business, while also avoiding the need to take out finance to buy machinery outright.
2. Tax efficiency: The cost of hiring equipment is 100% deductible as a business expense so can reduce your tax bill.
3. Up-to-date technology and models: As plant is constantly evolving, hiring gives you the advantage of access to the latest machinery to get jobs done as efficiently and quickly as possible.
4. Precise budgeting: Hiring can provide fixed machinery operating costs throughout the season, especially when hired on an annual term.
5. Increased flexibility: Hire doesn’t commit you to one farming system; enterprises can be changed without having to sell and replace machinery.
6. Trial and comparison opportunity: If you are unsure about your specification requirements, hiring provides the opportunity to trial different machinery to see what is most suitable for your needs, before making the decision to purchase any equipment.
SW Machinery Hire Ltd is based in Wiltshire and offers wide range of agricultural and plant equipment on short- and long-term hire anywhere in the UK.
For more information please visit www.sw-hire.co.uk.