Forestry Financing - Operating Lease and Contract Hire

Like the finance lease option though, VAT is payable on each rental rather than at the outset of the agreement. Although you cannot claim capital allowances, you are able to offset rental payments against any taxable profit.

John Deere Credit contract hire* is an operating lease that also includes a professional maintenance package.

Key benefits of Operating Lease:

• Certainty that the rental agreement cannot be withdrawn as long as you continue to abide by the terms and conditions of the contract. This contrasts with bank overdrafts which are repayable upon demand.
• The regular nature of repayments, and fixed interest rate, makes budgeting easier.
• A cost effective way to fund acquisitions. Using a traditional bank overdraft to fund equipment purchases can result in a growing hardcore of debt that can prove more costly to your business in the long run.
• Enhanced business cash flow with lower payments than with hire purchase or finance lease and the ability to spread VAT across the life of the rental agreement.
• None of the uncertainty and effort associated with remarketing used equipment and the opportunity to develop a more planned equipment replacement cycle, ensuring you can benefit earlier from the latest productivity enhancing technology.

Key benefits of Contract Hire:

• Known running costs. Extending the principal of fixed interest costs, this type of agreement goes further and fixes all equipment usage and servicing costs for your business.
• Lower repair costs with preventive maintenance. Although a dealer maintenance plan will not cover the cost of repairs outside warranty, the likelihood of a major breakdown is reduced with more regularly maintained equipment.

*Note: operating lease and contract hire options offered through select dealerships on a select range of equipment. Make sure to ask your local dealer for availability.