Contract Hire for the Small Business Customer

June 20, 2008 - PRLog -- When looking to purchase a vehicle that will be used for business purposes it is vital to assess cash flow and look at the difference between outright purchase and contract hire.  Many business owners are looking to save cash from somewhere within the business, contract hire will offer the opportunity to spread the cost.

A small to medium sized company will operate very much on a monthly or quarterly basis in terms of cash flow.  The firm may require a medium sized van and possibly two cars for employees or directors.  

The opportunity to pay one monthly payment to a finance company with full maintenance to protect the vehicle if it gets damaged and the option to return the vehicle at the end of the term with little or nothing to pay seems like the ideal solution.

“Contract hire is the most tax efficient and cost effective way to buy vehicles for your business.  Choosing to rent a vehicle long term makes sense when cashflow is tight and a low deposit and monthly fee allows you to monitor your spend.”

Simon Homer, http://www.carcontracthireonline.co.uk

Understanding the process of contract hire is the key to making it work for you.  A broker will help you source the best vehicle for your type of business as well as ensuring it comes in within a budget that is comfortable.

Contract hire is one of many ways to finance a fleet of vehicles.  When deciding what is right for your business take a look at all the options available to you and make the decision that is right financially for the business.  The term, payment, deposit and choice of vehicle can all be chosen to suit your requirement which is why this form of finance is popular for a small to medium sized business.  

Covase is a contract hire broker with over 30 years experience.  For more information, please visit http://www.carcontracthireonline.co.uk.