It’s always important to ensure that your organisation is able to operate flexibly, but this importance has been heightened due to the effects of the Covid-19 lockdown and recession. This is why, if you’re looking for an aluminium scaffold tower for sale, you should first decide whether it’s more viable to buy, rent, or lease. We’ve put together a guide that can help:

Buying Scaffold Towers

While buying outright tends to be the most popular option, if you’re looking to buy scaffold tower equipment, you should first consider these factors:

  • Interest rates and bank loans – sometimes, when you purchase a product using a loan from the bank, other assets in your business can be used as security or collateral. Your bank will charge you depending on your credit rating and your status with them, so this should also be considered.
  • Depreciating the value of the product and capital upfront – you’ll often need large capital investment to initially purchase an asset, which can place large demands on your capital reserves or cash flows. You should also take into account whether there will be an impact of depreciation on your asset and company accounts.

Advantages Of Outright Buying

  • The access equipment is yours
  • It’s available to you at all times meaning you can manage any unexpected changes
  • It will cost you less overall
  • You’ll be the owner for tax purposes, so you can claim capital allowances

Disadvantages Of Outright Buying

  • The initial amount will be costly so may impact your capital reserves
  • You may need to take out a loan to be able to afford the purchase
  • If you’re a small business, you may end up paying larger interest rates
  • You can’t spread the cost or predict how much money will continue to come into your business
  • You’ll be responsible for maintenance or damage
  • Its value will lessen over time

Renting Scaffold Towers

With renting, all costs are included in the rate, making it a viable option for many business owners. Here are the advantages and disadvantages of access platform hire:

Advantages Of Renting

  • Initial investment is less
  • You have access to more equipment
  • The rental company will take care of maintenance
  • Cost-effective for short-term use

Disadvantages Of Renting

  • Rental rates can change
  • If you’re renting for five years or less you can’t claim capital allowance
  • You have to depend on the rental company
  • You’re not guaranteed specific models

Asset Finance

Finally, if your business needs to invest in better technology, there are 3 options for asset finance – finance lease, operating lease, or hire purchase. With finance and operating, you will rent the equipment for a period of time, but with hiring, you’ll own the equipment by the end.

Advantages Of Asset Finance

  • Get the latest equipment for less expense
  • Affordable and readily available equipment
  • Can offset 100% against your tax
  • Repayment methods are flexible
  • Credit lines are not affected

Disadvantages Of Asset Finance

  • Can’t claim capital allowance for less than five years
  • You may have to make advanced payments
  • It can work out more expensive overall
  • You will be locked into agreements for a period of time
  • You won’t own the machine

As you can see, you have options, and every business has different needs. If you require more information about whether to buy, rent, or lease a scaffold tower, don’t hesitate to get in touch with us today – just click here.

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