Long Term Rental (LTR) is our most popular form of rental or “leasing” programs because it is designed specifically for Forklift Users by MHI. The reason for LTR’s success is the end user only pays for utilization of the equipment, specific to their particular operation. Here is the definition: “Long Term Rental (LTR) is the rental of equipment, with or without maintenance, for a fixed term of one year or longer.” Typically, LTR is treated as an operating lease (please seek counsel from your accountant or tax professional to be sure this applies to your corporate structure). The key reasons our customers choose LTR:
1. Complete flexibility – The LTR contract is a “one paper” agreement tying the maintenance coverage and equipment lease to one agreement. Supplements to the Master allow MHI to vary the Term, Maintenance Coverage, and Specifications by Location, Truck Type, and Application.
2. LTR contracts are fixed rate contracts and do not have escalation clauses or punitive language. Everything is agreed to and up front in the contract for the complete term.
3. The LTR contract and coverage is backed up and guaranteed by Material Handling Inc. There is no “third part” involved in the transaction.
4. Fleet Management through introduction of new equipment, better utilization, improved maintenance practices, reduction of downtime. This can also lead to a reduction of lift truck operators by increasing uptime and eliminating back-up equipment.
5. Aid in budgeting. Rates are fixed in advance and payable monthly
6. To provide a hedge against rising costs. Commitment for leased equipment is made at today’s dollar value and if inflation continues will be repaired in devalued dollars.
7. To increase working capital and improve cash flow by eliminating initial outlay of capital in acquiring equipment.
The key to a successful LTR program starts with a thorough Application Survey. The survey provides us with the information to put together a Custom rental plan for each customer, even rental plans for different departments for the same customer. Get out of the Forklift Business and turn it over to the professionals at MHI. Please call us today for a No Obligation Application Survey!