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The transport and haulage market is the backbone of Britain. All sectors within the UK will have a requirement to either transport products to customers, have stock deliveries, or will have to consider logistics when moving staff to various locations. They may even be providing the UK with its public transport system. So from trucks to containers, buses to coaches, these are vital pieces of equipment for any transportation company, which usually incur a major outlay of cash. Some companies may also experience 'down time' during a year, especially if they support the construction industry’s specific needs, due to the unpredictable UK weather. So a more creative use of the company budget is important. The use of finance within the transport sector conserves cash flow and provides better budget control, as payments are fixed. In addition to a finance lease, an operating lease is a popular option within this sector. This is where a residual value is taken at the end of the primary period. Again, this has cash flow benefits, as companies can match cash flow to repayments.
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