As the economy continues to recover, plant equipment sales were up 30% in the first quarter of 2021 and even 2.9% higher than 2019 (by number of units). Unit sales of construction equipment in the UK have recovered to pre-Covid levels, industry statistics suggest.
Asset Finance continues to be an extremely valuable tool for purchasing plant equipment. With monthly repayments over a set term, firms can profit from equipment use immediately rather than having to claw it back when paying upfront. It is also possible to include repair and maintenance costs into the finance agreement. Another benefit is that asset finance frees up other finance options needed for growth, like commercial loans or invoice finance. Asset Refinance is also a useful tool for firms that own equipment outright. You can free up equity from existing equipment and use the cash for other projects or needs within the business.
But that’s not all…in March 2021 chancellor Rishi Sunak announced a ‘super-deduction’ tax break for companies investing in new equipment over the next two years. This will cut companies’ tax bill by 25p for every pound they invest in new equipment, the chancellor said, meaning that they can reduce their taxable profits by 130% of the cost.
With several clear benefits to purchasing assets like plant equipment, there really is no reason to hesitate.
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