HIAB Equipment Financing & Leasing Options

hiab lorry hire near me

Understanding HIAB Equipment Financing & Leasing Options

When it comes to managing heavy lifting or unloading needs, HIAB equipment has become a favourite choice among businesses in construction, logistics, and various other industries. However, acquiring HIAB systems can be a substantial expense. This leads many businesses to consider either financing or leasing options to make these essential assets more accessible.

In this guide, we’ll dive into the financing and leasing options available for HIAB equipment, discuss their pros and cons, and provide practical advice for choosing the option that best suits your business.

What is HIAB Equipment?

HIAB, short for Hydrauliska Industri AB, is a term often used to describe truck-mounted cranes or loading equipment. These machines are valued for their strength and versatility in handling heavy materials. Whether you’re lifting pallets of bricks on a construction site or unloading heavy machinery, HIAB equipment offers a reliable solution.

For small businesses trying to expand or large organisations upgrading their fleet, the cost of brand-new HIAB equipment can be daunting. That’s why many companies choose alternative means of acquiring this equipment.

Why Consider Financing or Leasing?

For businesses watching their cash flow, securing HIAB equipment through financing or leasing ensures they don’t need to fork out the entire cost upfront. Both options offer flexibility and allow companies to incorporate newer machinery into their operations without completely redrafting their budgets.

Cash Flow Management

Imagine you’re a small logistics company, and you’ve just landed a substantial contract. To fulfil the contract effectively, you need a HIAB truck. Buying it outright could drain your reserves, leaving your company vulnerable to unforeseen expenses. Leasing or financing allows you to spread the cost, giving you the breathing room to maintain smooth operations.

Tax Benefits

Depending on where you operate, leasing HIAB equipment could make you eligible for tax relief or deductions on equipment expenses. With financing, the interest paid on the loan might also be deductible in some regions.

Access to High-Quality Equipment

Both leasing and financing enable businesses to get access to well-maintained or newer HIAB models without sacrificing large sums of money. Whether it’s a light-mounted crane or a heavy-duty unit, these options give you the opportunity to pick the grade of equipment that aligns with your workload.

Exploring HIAB Equipment Financing Options

When it comes to financing, you essentially borrow money to purchase the equipment. Here are some common loan options and what you can expect:

Equipment Loans

This straightforward option involves securing a loan specifically to pay for your HIAB system. Once the loan is paid off, the equipment is entirely yours. This makes equipment loans appealing for companies planning to use the HIAB for a long time.

Example: Consider a small hauling company that needed a mid-size HIAB truck for daily operations. The owner secured an equipment loan with affordable instalments over five years. By owning the truck outright, he had no payments to worry about after those five years, maximising profits.

Hire Purchase Agreements

Hire purchase operates halfway between financing and leasing. You pay an initial deposit, followed by monthly payments. Once the instalments are complete, the equipment is fully owned by your business. This is a popular choice as it combines ownership pride with manageable payments.

Finance Lease Agreements

Under a finance lease, you don’t own the HIAB system but can use it as if it were your own throughout the lease term. At the end of the lease period, you may have the option of purchasing the equipment at a reduced rate.

Understanding HIAB Equipment Leasing

Leasing differs from financing in one big way: ownership. When you lease equipment, you’re essentially renting it for a predetermined period. This method is ideal for businesses that need HIAB equipment for short-term projects or prefer not to deal with ownership responsibilities.

Operational Lease

An operational lease is where you rent the HIAB system for a short or fixed-term period, and at the end of the lease, you return the equipment. This method is ideal for businesses needing equipment for project-specific tasks.

Example: A construction firm had a one-year contract that required heavy lifting equipment. Instead of buying a HIAB outright, the firm opted for an operational lease. Once the project was finished, they returned the machine without worrying about storage or maintenance.

Contract Hire

Here, your monthly payments typically include maintenance and servicing costs, which can save you lots of time and effort. This is an appealing option for those who want predictable expenses and don’t want to be burdened with ongoing repair worries.

Key Considerations When Deciding Between Financing & Leasing

To determine which option best fits your requirements, ask yourself the following questions:

How Long Do You Need the Equipment?

If you’re certain you’ll be using the HIAB system long-term, financing might be the better option. Leasing tends to favour short or fixed-use cases.

What About Maintenance Costs?

When leasing, particularly under contract hire, the responsibility for maintenance typically falls on the lessor. With financing, once you own the equipment, maintenance costs are on you.

How Does the Option Fit Your Budget?

If you need to lower your immediate spend, leasing often has a smaller upfront cost. Financing, on the other hand, typically demands higher initial payments but could save you more in the long run once you own the equipment.

How to Approach Lenders or Lessors

When exploring either financing or leasing options, transparency and preparation are key. Make sure you have clear answers to the following before reaching out to potential lenders or lessors:

Your Business Needs

Are you looking to expand your operations, take on larger contracts, or reduce downtime? Clearly outlining why you need HIAB equipment will help lenders and lessors tailor their options to your needs.

Your Budget

Have a firm understanding of how much you’re willing to spend upfront and on monthly payments. This will prevent over commitment and help you choose an option that genuinely suits your financial position.

Equipment Type

Consider whether a smaller, more cost-effective model will suffice or if your workload truly demands a premium HIAB unit.

Growing Your Business With the Right Decisions

Both financing and leasing HIAB equipment are viable solutions for businesses aiming to grow or improve efficiencies. Whether it’s expanding your fleet of cranes or simply opting for a short-term lease for an upcoming contract, the key lies in balancing your financial capacity with your operational needs.

Consider reaching out to a trusted financial adviser or directly consulting with finance and leasing providers. They can walk you through the nuances, ensuring the HIAB solution you choose aligns with both your budget and long-term business goals.

With the right approach, you can enjoy the benefits of HIAB equipment without the financial strain of an outright purchase.

Scroll to Top