Monthly Archives: August 2014

Types of renting heavy equipment

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Most of the equipment manufacturers have an affiliated renting company. It permits them to assist their customer’s monetary transactions quite easily.

There are three main types of renting- finance renting, operating renting and contract hire.

Types of renting

  • Finance leasing: – It is also known as full payout lease. This kind of leasing or renting helps you to get all the financial advantages and risks without any legal title. This renting rate is calculated to get the total value of the asset including finance costs during the contract time period. The asset is handover to a third party at the end of the renting period. Here, you can get a lion’s share in the proceeding sales. This can happen only if the renting period is not extended. You cannot become the owner of the equipment at anytime, unless you go for a private arrangement with the third party. As you can extend your renting contract period and already have paid almost the full amount during the initial phase, so you have to pay very little during the later extended period of the contract. It is sometimes referred to as “papercorn rental”.
  • Operating lease: – Unlike financial leasing, operating renting is like a regular rental. It comes with a smaller time period. The renter here tries either to sell the equipment in a second-hand market or to rent it again to avoid the need to regain the total asset price by the regular lease payments. There may be a choice for elongating the renting span at the end of the initial rental phase. Just like the financial renting, you cannot become the owner of the equipment at any point of the time. But, contrary to financial leases, you will not get a single penny in the sales procedure.
  • Contract Hire: – It is another kind of operating lease which involves a lot of services such as management, maintenance or replacement if the equipment needs to be repaired.
  • Hire purchase:- In this kind of leasing agreement, you will get an option to purchase the equipment. They will confer the legal title to you when you have cleared al the payments. The term of a hire purchase should be notably shorter than the working life of the equipment. As you have bought the machine outright, you can easily claim capital allowances from the renting company to make as much profit from it as you can. Hire purchase agreements are written especially for domestic users only. Business owners can avail this type of renting.

 

It is very important for you to count on your future needs. Every kind of renting option has its own merits and demerits. It will have an everlasting effect on your monthly payments. The renting payment heavily depends upon the total value of the equipment, rate of interest and duration of the renting.

If you have any query regarding the procedure of renting and its terms and conditions, then you should immediately seek the help of your advisor for further assessment.

Want To Protect Your Heavy Equipment From Theft – You’ll Find This Helpful

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You must have come across this many times when one fine morning, you are informed by your employees that a particular part of heavy equipment is missing. You get up in a state of shock and wonder how this can be possible and what use a part of an equipment would be for any person. Well, such thefts are quite rampant in the entire US and one got to be very vigilant to ensure that his things are at place. Many a times, the entire machine gets stolen and shipped to other country and you are left with miseries. Before we begin noting the possible solution for this problem, let us first understand the reason why one would steal parts of heavy equipment or the equipment as a whole.

The market for stolen equipment is very big in the United States and the money involved in this business is huge. Therefore, it has gangs that have the skill to open up equipment and carry away few important parts of the machine in no time. The people who are running this business never fall short of men and therefore in spite of the cops taking every possible action to nab them, their counts keep on increasing.

Let us now discuss what could be done to contain this problem so that you do not suffer loses.

Keep your documents in place:-  Ideally, most owners of construction companies lose the track of important documents pertaining to the equipment they have bought. Due to this, if the equipment is stolen, it could not be traced by the cops and they end up taking all the trouble for nothing. Hence, it is crucial to keep all your documents like model or the serial number, the manufacturing year of the equipment, photos etc. that will prove to be helpful to the cops to catch hold of the miscreants.

Conduct a sound background check of your employees:-  It is highly recommended to do a thorough background check of all your employees and employ only them who have a clean record with no criminal background. Alternatively, it is prudent to keep a watch on employees whom you find to be suspicious. Questioning them directly may not be the right way to deal with them but checking their behavior may give you some idea if not all.

Maintain a register:-  You should maintain a register where you can keep a record of people coming in and going out of the site. Alternatively, you can also employ security personnel who will check the employees every time they enter or exit the construction premise.

Install cameras at different locations:-  This should be really helpful in nabbing the culprits. If the thieves do not know that you’ve installed cameras would definitely make the mistake of not wearing masks and that will help the cop nab them. However, if at all the thieves know that there are cameras installed, they would rather look out for some other place and may skip yours.

Heavy Equipment Lease Application Form Fill Up Process – Is It Time Consuming?

The process of filling heavy equipment lease application form does not take up a lot of time. Yet, you should need to be prepared intensively and methodically before you fill the lease application form. It not only saves your valuable time but also helps in forestalling the delays during form fill up.

Majority of the clients of any heavy equipment leasing company are industrialists and businessmen. May be this is the reason why one of the most frequent questions comes in the mind of business tycoons regarding the time takes for claiming heavy equipment in lease. Usually, the entrepreneurs are very busy and drawing out time for filling lease application form is not an easy task for them. But, here is good news for those busy personalities that nowadays, equipment rent form filling procedure takes very short time because of the advent of internet. Why the applicants should focus their time in arranging the data requisite for heavy equipment hiring form? Here in the below discussion you will get the answer in detail. Just go through it.

Application Form Depends on the Type of Heavy Equipment

Before you select your desire leasing company, it is necessary to understand the particular paraphernalia suitable for your purpose. Often the weighty apparatus renting firms asked the construction and mining companies to show their equipment vending written requirements and if the companies submit the data in time, it will take only a few minutes to accomplish the process of form fill up. Moreover, the apparatus leasing corporations enquire the clients about their future plans in business development. The application format of every renting company is not same. Therefore, it is sensible for the capitalists to go through the website of the renting concerns because there they get to see the layout of the submission form. For instance the data required for leasing an excavator is entirely different from the dozer.

Essential Documents for Equipment Letting Application Form 

Prior to the form filling procedure, the industrialists must collect all the important documents for the application method. Here in the below mention points, some of the basic documents demanded by the leasing firms are given:

  • Full name of the possessor
  • Sponsors of the enterprise
  • Federal tax ID
  • Social security number
  • History of the company
  • Contact address of the head office and branch office

Conditions in Bulky Paraphernalia Application Form

Once the mining and construction companies sort out the issues of financial related matters with the apparatus leasing companies, now they have to choose the term period for the particular heavy equipment. Usually, most of the letting organisations provide their clients with two sorts of term periods – two years and four years. If the traders select the four year term, then the monthly hiring disbursement amount is less. It is a vital decision so as to avert the problem of cash flow.

The heavy equipment renting firms facilitate their customers with three assorted choices of end-of-term that are Fair Market Value, $1 buyout and 10% purchase. The industrialists should be careful in these matters when signing the agreement with the weighty apparatus leasing organisations.