Whether it’s a small or big business, your company needs to acquire new equipment constantly, in order to deliver the best services to the customers. Unfortunately, as we all know, buying new equipment frequently can cost a lot of money. That is why in the last few years equipment renting services became a popular option among many companies. Thanks to this rental services, companies can save a lot of money which can then be spent on other projects, and also improve the flexibility of the business.
As with every other service, renting has its own pros and cons, although out of the three options, buying, renting or leasing – renting tends to have the most pros and the least cons. That is why it is really important to thoroughly analyze your situation and financial status before making a decision, so that you can choose the best option for the future of your business. Before making this decision, you may want to consider the most common benefits and drawbacks that come with renting:
5 benefits of renting your equipment:
- You only pay for it while you use it – When working on more short-term projects, the best option is to rent rather than pay for new equipment. This is also really convenient when the builds equire particular pieces of equipment which are more specific and you probably won’t use again after the job is done. Because of that, you can add the rental price to the job pricing.
- You don’t have to deal with maintenance and breakdowns – Renting a piece of equipment almost always includes In the event of a breakdown, the rental company will be able to send a professional to deal with the problem or simply replace it with a new one.
- “Test-drive” before purchasing – Sometimes it can be hard deciding what piece of equipment will work the best for your business. Buying the piece can be a waste of money, especially if you later find out it’s not quite what you need. This is where rental companies come really in handy. Through them, you can test different equipment and later decide which one works the best for your business.
- Staying up to date with technology – As we all know, new and easier-to-use technology is developed everyday. It’s no secret that using modern technology can make the job much easier. That is why spending a lot of money on buying a piece of equipment can be a big risk, when there are new and easier ways to get the job done invented constantly. By renting, you have the chance to be using the best of construction equipment technology.
- Reduction in paperwork – Depending on when and how frequently you rent, renting reduces this administrative duty because it makes budgeting far simpler. Plus, the rental can be deducted as a business expense. As another bonus, you don’t have to deal with other fleet management tasks like like inspections, transportation and storage of equipment.
When renting is not the best option:
- Long-term projects – As we already said, when working on short-term projects, renting is the best option. Naturally, opposite of this, renting equipment for long-term projects can be expensive. If you’re using a piece of equipment for a long time, it can be much cheaper to buy it. Decide the best option now, considering all factors, and save time and money later.
- The equipment might not be available – Although you have a lot of flexibility when renting, the equipment you need may not be available when you need it. This can be a big problem when you have short notice before starting the job. The good thing is that number of rental companies is increasing, but the bad side is that you can never be 100% sure that you won’t miss out the piece you need for a specific job.
- Can’t get your money back – One of the bigger problems when renting equipment is that you can’t get any part of the investment back. When you’re buying a piece of equipment, there is a big chance you can later re-sale it if you keep it in good shape. With renting, you don’t really have this option because you don’t own the equipment.
As we already said, renting tends to have a lot more benefits and a small amount of drawbacks. However, it is always best to consider all of them, in order to make the best decision for your business. Consider all the option and choose what will work best for you!