Businesses can benefit from renting expensive equipment, such as loaders, generators, and trucks, rather than buying it. Break it down by analyzing the costs and benefits of both options. Only get equipment that meets your needs. Take into account factors such as cost, storage, maintenance, life span, available capital, and labor costs and savings. The best benchmark that indicates you should choose purchase over rental is when you are using the equipment sixty to seventy percent of the time your business is in operation. Safety, efficiency, and quality are other concerns. Most industries, from agriculture to trucking, can benefit from renting, as it can save money, fill a temporary gap, and help meet crunch deadlines. You don’t have to make an investment of capital up front, and you can decrease your expenses such as maintenance and storage, as well as taxes and liability, over the long run. Rental equipment can help businesses remain compliant without a huge outlay, can reduce wait times, and help businesses keep track of new opportunities. Renting can help you preview items, remain competitive, gain flexibility, and increase convenience. Make sure to pick the right rental partner and look at their track record before renting.
- Two things no company should allow is equipment that is a poor fit for the utility needed and equipment that sits around unused.
- When deciding if a rental is ultimately more cost-effective, take time to estimate payments that will likely accrue for the time the machine is likely to be in use.
- Consider if any equipment options have more than one specified use, whether rented or purchased outright.
“As everyone pores over the balance sheets and all aspects of the business to find advantages, it can literally pay to explore and compare the costs of renting or leasing equipment against the expenses of buying and owning it.”