Record Number of UK “Hire” Companies Formed in February

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Companies House data shows more “hire” companies were formed in February than ever before, according to company name analysis by Duport.

There is just less cash available to businesses right now because of low sales, tighter margins and less bank lending

As the United Kingdom continues to adapt and respond to the most serious recession in living memory, an emerging trend among new companies shows that more and more of us are looking to hire instead of buy.

A record 125 “hire” companies were created in February, smashing the previous record of 107 set in March 2007. The most popular types of hire company include cars, skips and plant equipment, whilst the most common company type is a Limited company.

Managing Director of UK Company Formation agent Duport, Peter Valaitis comments: “There is just less cash available to businesses right now because of low sales, tighter margins and less bank lending. That doesn’t change the fact that companies and people still need to get their hands on certain equipment to carry on. It makes sense that more of us are turning to the concept of hiring rather than buying the things we need to operate.”

Since the financial crisis, a new marketplace for online rental services has developed online. Companies like hirehub, irent2u and erento have captialised on a new attitude towards hiring as a YouGov poll suggests around 75% of people would head straight to the internet if they needed to hire something.

Hiring the same thing frequently can work out more expensive than buying an item up front, but there are many circumstances when hiring can be the right option. When hiring something, the hirer is generally not responsible for repairs and upkeep. They do not need to worry about that item being replaced by a newer version, and it is not necessary to part with a large amount of cash up front.

The biggest reason for hiring something of course is when the item is only need for a short period of time. It would make no sense for a couple to buy a marquee for their wedding, and it would be a waste of money to buy a car to use for just a few days whilst abroad.

Duport Associates Ltd is a leading UK company formation agent, operating in the UK for around 15 years. Duport registers around 10,000 new companies each year using its Companies House approved software. The Company Register which is maintained by Companies House contains public information about Limited companies and directors.

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Peter Valaitis
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