On occasions referred to as Long-Term Hire. Contract Hire allows the customer easy budgeting – they know what they have to pay, allowing them to plan ahead and control costs.
Includes delivery, maintenance, service and repairs, removes the worry and expense.
Off-balance sheet finance
On qualifying agreements, the outstanding rentals are not shown as liabilities on the customers balance sheet, and therefore do not adversely impact the gearing ratios.
100% rental allowable against tax. Improvement of financial ratios such as gearing and return on capital.