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Plant Hire Start-Up Guide
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Operations and logistics

Cross-hiring plant: how it works and when to use it

How cross-hiring works, when it makes sense, how to price it, and the insurance and paperwork that protect you when the machine isn't yours.

Guide specPHSUG-35
Read time6 min
LevelBeginner
MarginUsually thin
UpdatedOct 2026

Key takeaways

  • Cross-hiring means hiring a machine in from another firm and hiring it on to your customer.
  • Use it to say yes to work you can't cover and to test demand before buying.
  • Margins are usually thin: agree trade rates and include delivery in your sums.
  • Check your insurance covers hired-in plant before the first cross-hire.
  • If you cross-hire the same machine most weeks, buy one.

What cross-hiring is

You take the customer's order, hire the machine from another hire company (often at a trade rate), and invoice the customer at your rate. To the customer, you're the supplier. To the other firm, you're the hirer.

When to cross-hire

  • All your own machines of that type are out.
  • The customer wants something you don't stock.
  • You're testing demand for a machine before buying it.
  • A job needs a large or specialist machine for a short period.

Pricing and margin

LineExample
Supplier's trade rateAgreed in advance, ideally a discount on their list price
Supplier deliveryOften charged separately; include it
Your rate to the customerYour normal rate card
Your marginWhat's left after the above; often small

Even a small margin can be worth it if it keeps the customer from going elsewhere for the rest of their hires.

Choosing suppliers

  • Reliable, well-maintained fleets and honest delivery times.
  • Clear cross-hire or trade terms, in writing.
  • Willing to deliver in their own or neutral livery if that matters to you.
  • Fast breakdown response. Their delay becomes your problem with the customer.

Insurance

When you hire a machine in, you're normally responsible for it as the hirer under the supplier's terms. Make sure your plant policy covers hired-in plant for the value involved. See plant hire insurance.

Paperwork

  • Supplier's hire contract and your order to them, with the machine, period and rate.
  • Your own hire agreement with the customer, on your terms.
  • Delivery and collection notes with condition photos, shared with the supplier.
  • Inspection evidence from the supplier (PUWER, LOLER where relevant).
  • Pass off-hire calls to the supplier the same day, so you're not paying for days the customer isn't.

When to buy instead

If you cross-hire the same type of machine most weeks, you're paying someone else's finance. Compare a year of cross-hire cost with the cost of owning one, using the utilisation and break-even calculator.

FAQs

Common questions

What is cross-hiring in plant hire?
Hiring a machine in from another hire company and hiring it on to your own customer, who deals only with you.
Is cross-hiring profitable?
Margins are usually small, but cross-hiring lets you keep customers and test demand without buying. If you cross-hire the same machine regularly, owning one is often cheaper.
Who insures cross-hired plant?
Usually you, as the hirer under the supplier's terms. Check your plant policy covers hired-in plant for the machine's value.

This guide is general information for people setting up a plant hire business in the UK. It is not legal, tax, insurance or financial advice. Rules and thresholds change, so check current guidance on GOV.UK and take advice from an accountant, solicitor or broker before acting.