Should you rent, lease, or purchase a cardboard baler for your business?

If your business produces a lot of cardboard waste, it’s time to consider getting a cardboard baler.

It could save your business money, earn you the best price for your bulk waste, and help you prove your recycling credentials to your customers.

So, should you buy, rent, or lease a cardboard baler?

Here’s our handy guide to help you make an informed decision.

Why should we all recycle cardboard?

The simple answer is that it saves trees and reduces the amount of waste going to landfill.

Of course, if we’re cutting down trees, they aren’t helping us take excess carbon dioxide out of the atmosphere. Plus, we’re rapidly running out of landfill space and the costs are only going to spiral.

Making cardboard from scratch requires wood pulp from felled trees and involves a process using several chemicals. In fact, a tonne of cardboard made this way uses almost three tonnes of wood.

Making it from recycled cardboard means that trees don’t have to be felled, it cuts many of the chemicals out of the process and reduces the energy used.

Did you also know that for every tonne of cardboard recycled, more than six cubic metres of landfill space is saved?

In the UK, 84% of all the corrugated cardboard we use is recycled, which means two million tonnes a year is saved from landfill.

We could do better when it comes to other forms of cardboard and paper, though, as around seven million tonnes a year is still going to landfill.

How is cardboard recycled?

The waste cardboard is chopped up into small pieces and mixed with water to form a slurry.

Any foreign items such as metals or plastic are removed at this stage, and then the cardboard paste is pressed until it achieves the correct consistency and dried. More water is added as the paste, called the noodle, is processed.

It’s then pressed into the thickness required, dried again, and used to create new cardboard for boxes or packaging or chipboard.

Why should businesses recycle cardboard?

Sending waste to landfill is an expensive business.

Including landfill tax and depending on which part of the UK businesses operate in, the average charge is around £130 per ton, and £85 of that figure would be landfill tax.

So, it makes business sense to ensure the smallest amount possible is sent to landfill and everything you can recycle is recycled. Otherwise, it can all add up to a substantial bill.

There are also the costs of waste and recycling collections. If you throw uncompacted cardboard boxes into your skip, you’ll fill that volume up much more quickly than if you used a baler for compaction. You’ll need more collections per month, quarter, or year.

So, a decision not to bale it could be costing you dearly.

On the flip side of the coin, sending cardboard for recycling could earn your business revenue to offset the costs of dealing with it.

The recycling of cardboard can be from free to a rebate of £50 when trading conditions are good, something which could be a welcome boost to your bottom line.

Having sustainable recycling policies is also great PR for a business.

Many consumers now also look at eco-friendly credentials before they decide to buy. 

What are the benefits of using a baler?

When it comes to disposing of your cardboard waste, transportation is a huge part of the cost.

The more volume you transport, the more it costs.

So, one easy way to reduce costs is to reduce the volume of the weight you send for recycling.

A baler uses tonnes of force to compact that cardboard waste, reducing the volume by up to 90%, so more of it fits into a lorry’s container for transportation.

It also turns a business liability into something which is an immediately sellable material.

When baled waste reaches its destination, recycling companies will be looking for baled waste which reduces their cost of processing it. Unbaled waste would have to be baled by their own staff.

That means your business would earn less for it.

A baler could also help your site become tidier and safer, removing piles of empty boxes which could become a fire or trip hazard and freeing up precious floor space.

Should you rent a baler?

This is a cost-effective and flexible method of getting a baler for your business.

Renting monthly allows you to have all the benefits without a major capital outlay, keeping the funds in your business for other things such as hiring staff or buying in raw materials. It also allows you to scale up easily by taking on a larger baler if more waste is being produced.

Rental agreements can also come with servicing and 24-hour breakdown repair, ensuring your business can run smoothly even if something does go wrong. Regular servicing also helps reduce the number of consumables you need.

What are the costs? – Between £15 and £50 a week.

Should you lease a baler?

Lease agreements tend to be longer-term than rental agreements, often 12 to 60 months.

So, business owners who know they’ll need a baler for a lengthy period may find a better deal by leasing and fixing their costs.

There are two types of lease, lease to buy and lease rental, which is a hire agreement where you don’t own the equipment at the end of the lease.

These agreements can also have tax benefits as lease rental is 100% tax deductible. All the payments you make for the baler can be written off against your company’s tax bill. 

What are the costs? – Leases tend to be the rental cost plus 8% flat rate interest, which can add up to 40% compound interest over a five-year lease. Typically, that could add up to £3,500 for a small baler over five years and £7,500 for a medium baler over the same period.

Should you buy a baler?

Buying a baler involves an immediate capital outlay, sometimes running into thousands of pounds.

A service or maintenance contract would also have to be negotiated separately, but most new balers come with a six or 12-month warranty. 

What are the costs? – New small balers cost around £3,500. Large, new balers can cost around £12,000. A good second hand small baler would still cost between £2,000 and £3,500.

How do you choose the right cardboard baler for your site?

Getting the correct baler is a matter of matching the equipment to the size of your business and the output of cardboard waste you produce. Here’s your at-a-glance checklist of the questions you need to ask:

  1. How much cardboard does your business produces every month?
  2. How much space does your business have?
  3. What’s the size and type of baler most suitable for your business?
  4. Do you need a portable or static baler?
  5. How much will you need to budget for consumables and accessories?

Vertical v horizontal balers – Vertical balers are fed at the top and compress items from top to bottom, so they tend to be smaller in size and are more suited to businesses with small to medium amounts of cardboard waste. A vertical baler would suit most UK businesses. Horizontal balers are perfect for industrial amounts of card as they can be fed can be fed from a conveyor, chute, forklift truck, or bin tipper. They automate a good deal of the process to save on staff time, too.

Small v large balers – You’ll need to weigh up the amount of your cardboard waste against the size of your site. Smaller premises such as shops or offices will need a smaller baler making 30kg bales. Larger businesses will need a twin-chamber baler which produced 100kg bales. Industrial premises will need a mill-sized baler making bales of up to 450kg. Check out the specifications on each baler to see which would suit your needs and take into account how much space you’ll need to store cardboard before processing.

Static v portable balers – Will you need to move your baler around your site? If so, a portable baler would be the best option for your business, especially if you’re dealing with small to medium amounts of cardboard waste and have limited space. Larger balers tend to be static, so you’ll need a permanent site with enough space for loading card.

Getting expert advice – Talking to waste management consultants with decades of experience in the field, like ours at Inspire Waste Management, will help you work out all the issues you need to consider when choosing a baler. They can carry out a site survey and help you calculate the accurate volume of waste you produce.

Budgeting for accessories – You’ll need to ensure you have enough in the budget for accessories such as baler oil, strapping, wire, and bags. 

Baling twine costs around £100 for four reels, while a compact baler trolley will cost around £140 and a bundle of baling wire costs around £40.

Are you looking for a company with expert waste management consultants, like Inspire Waste Management, who can help you get the right cardboard baler for your business? Call our friendly Inspire Waste team on 0800 002 9282.

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Could baler hire be the right decision for your business in 2020?

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Are you considering baler hire for your business in 2020?

We tend to review our costs and look at ways of attracting more money into our businesses at the start of every year, so we should now be looking at creative ways of getting the best deal for our bulk waste.

Baler hire could help you achieve that.

What are the key benefits of baler hire?

  • Your bulk waste transportation costs are cut – The baler compacts your cardboard or paper waste, meaning more bundles can fit on a lorry to be transported. Baled waste also tends to attract higher bulk waste prices than unbaled waste, as the buyer won’t have to bale it themselves.
  • You can upgrade without the cost of buying new equipment – A baler would cost between £2,500 and £12,000 to buy, depending on the size and whether you choose new or second hand, but the cost of renting can be as little as £80 per month.
  • You preserve the capital in your business – Rather than spending a lump sum on buying a baler, you spread the cost of having it in a monthly rental. This allows you to spend the cash on expanding your workforce, for example.
  • You can get an agreement which includes maintenance – This helps you to avoid costly break-downs and keeps your business running smoothly.

How do you choose the right option?

There are important questions you need to ask in order to get the right fit for your business.

  1. How much bulk waste does your business produce? The larger the amount of waste, the larger the baler you will need to cope with it. A standard 60-inch cardboard baler would produce around two bales of 50 cubic feet per hour.
  2. What space do you have to site a baler? The larger the baler, the larger the space you will need to house it, have safe space around it, and store your bulk waste.
  3. Will your floor take the weight of a baler? This is especially important if you choose a large baler. Businesses with first-floor offices and above should ensure the floor can take the weight of the baler and the stored waste.
  4. Do you need your baler to deal with more than cardboard or paper? Some balers deal with textiles, steel cans, and plastics. You’ll need to decide whether your business produces enough of these items in bulk waste to justify baling them.
  5. Do you need an agreement which includes a maintenance contract? This allows you to know the cost of your new baler every month, avoiding large bills if it breaks down, and keeps your machine in good order, ensuring there won’t be a break in your service.

How do you choose the right baler hire company?

Choose a company with expert waste management consultants, like Inspire Waste Management.

They can help you achieve the best price possible for your cardboard waste and advise you on baler hire.

Ensure the baler company can also supply you with any baler products you need and that it has appropriate ISO accreditations.

Need advice on baler hire? Call our friendly Inspire Waste team on 0800 002 9282.

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What are the upsides of baling cardboard?

What are the upsides of baling cardboard? You can earn revenue that may cover or exceed baler rental costs

 baling cardboardHas your business been thinking about baling cardboard, but you’re worried about baler rental costs?

Don’t be! It’s one of the cheapest and easiest ways to make your business more sustainable.

In fact, instead of looking at baler rental costs in isolation, think about the potential revenue your cardboard waste could be generating.

What are the typical baler rental costs?

If you were buying a cardboard baler, it would cost from around £2,500.  The price rises to more than £5,000 with larger baler capacities.

Many businesses don’t want another capital spend, though, so renting a baler is the perfect choice for them. That could cost them from as little as £20 per week, depending on the baler capacity.

You get a better price for your waste cardboard by baling it. Per tonne, you can get between £40 and £65 for cardboard waste and you’re more likely to get the top end of that price if the waste is baled ready for your purchaser to transport and deal with.

Waste businesses like ours can transport more compacted, baled cardboard at once than loose cardboard in a skip, so it cuts our transportation costs.

Don’t forget that the more profit you make on the waste you recycle, the more you can offset the rental costs for your baler.

What are the other benefits of having a baler?

You keep your site clean and free of waste and reduce the hazards to staff and visitors.

Space is freed up at your site so that you can install more equipment or store more stock.

Your business is complying with its duties under the environmental regulations. Cardboard is an easily recycled material and 75% of all cardboard and paper is now made from recycled materials.

So, your business is helping to save precious resources and reduce the amount of energy needed to produce it from scratch.

You get paid for your waste and you help to save the trees. It’s a win-win scenario.

Why rent?

  • It’s the simple option – There are no capital costs and you don’t have to service a loan to buy the machinery. You simply rent the right equipment for your business, you are trained in how to use it, and you start to reap the benefits.
  • There are no maintenance or depreciation costs – Your contract can ensure the baler is maintained and stays working for you.
  • It’s flexible – There are a range of different contract options to suit any business.
  • Your transportation costs are cut – Businesses like ours can buy and take away your baled waste cardboard for recycling. The more you recycle, the bigger the saving.
  • We can ensure you get the best deal possible from the arrangement – Our waste consultants will carry out a site survey and recommend how your business can save money.

How to choose the right partner for your bulk waste recycling

Look for a company with expert waste management consultants, like Inspire Waste Management, who can help you achieve the best price possible for your cardboard waste.  We can achieve higher than market values for our clients.

Ensure the company can supply you with any baler products you may need and has appropriate ISO accreditations.

Need advice on dealing with your bulk waste and baler rental costs? Call our friendly Inspire Waste team on 0800 002 9282.