C&H Carpets & Flooring saves time and money under ‘Sale and Rentback’ deal
C&H Carpets & Flooring has signed a ‘Sale and Rentback’ deal with Northgate, enabling it to expand and upgrade its fleet while avoiding downtime and repair costs.
Northgate has purchased the flooring company’s existing vans and is providing new vehicles on a rolling basis, currently at a level of one van per month. As a result, C&H Carpets & Flooring is saving nearly £50,000 on maintenance and acquisition costs.
The average age of Northgate vehicles is just three years, which has helped C&H achieve a noticeable reduction in fuel costs and MoT bills, together with an associated increase in cash flow.
The annual saving on SMR costs alone across the 18 vehicles in the fleet is £18,000, while there has been a significant reduction in downtime. In addition, as the firm no longer needs to purchase new vehicles, working capital has also been increased by around £30,000.
Northgate’s all-inclusive service also includes the provision of a dedicated account manager who is available to assist a business with its requirements and foster a positive ongoing partnership.
Neil Close, managing director, C&H Carpets & Flooring, said: “We were looking for an option that would save us both time and money while also helping us avoid the short-term strain that rapid expansion can place on cash flow. Many of the service solutions we considered required deposits and other upfront payments, and also meant we would have to deal with the additional hassle of selling our existing older vehicles.
“Northgate’s all-inclusive vehicle hire package, on the other hand, enables us to replace and upgrade our vehicles on a flexible basis in line with our own requirements,” added Close. “That gives us a level of financial and operational control that would otherwise be difficult to achieve.”
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