Advantages Of Renting Equipment Versus Owning It
Companies and businesses are always eyeing any competitive advantage they could get. When pouring the balance sheets to find some way to achieve a better stance, it can pay to compare the cost of leasing or renting heavy equipment instead of buying or owning them.
Loaders, skid steers, excavators, lifts, generators, and other such essential equipment are used by almost every business. Like any other resource, the equipment must be streamlined to achieve maximum efficiency. Cost-benefit analysis in most cases shows the ease in renting the equipment rather than buying them.
Renting equipment is not a difficult job but it allows bigger companies to augment their fleet when and where needed while smaller companies can use rentals and purpose work and projects that involve the use of specialized equipment, enabling them to grow their business.
The rental option can fill in for emergency situations and provide flexibility to the logistics and financial budgeting. The equipment rentals are immensely popular in various industries due to the wide range of benefits it offers to business owners and companies of all levels. Here are some of the benefits and advantages of renting equipment.
No Upfront Investment
Heavy machinery and equipment such as excavators, track dozers, telehandlers are expensive and need hefty amounts that can take a year or more to come together. This means you are freezing a big amount in capital for equipment. This amount will be bound in the equipment until you sell it. If you use the equipment more and over years you will surely not get the desired resale value.
Businesses usually avoid freezing big amounts and try to bring them in a circle to make profits. So, by renting equipment you can save your money from freezing in the form of expensive equipment.
Decrease In Long-run Expenses
Many companies have maintenance teams, responsible for the upkeep and regular servicing of machines, necessary for the smooth running of operations. The job of mechanics includes checking the hydraulics, fluids, regular service, changing of machine parts, regular upgrades, and control leaks and breakdowns when required.
You can foresee and estimate the cost involved in renting equipment but estimating the cost of maintenance of equipment owned is difficult to forecast. In the long run when equipment becomes warned maintenance cost increases. Hence, rentals can save you from long-run expenses.
Avoid Storage And Transportation Cost
Whenever you buy heavy equipment or machinery, you need a temporary or permanent storage area for it. As no one wants to leave such heavy investment in the blistering sun, heavy rains, and storms. As continuous exposure to these elements damages the equipment. This degrades the equipment value and causes financial loss.
Moreover, rentals can make you free from the logistics charges of transporting equipment or machinery from one location to another. Hence, by renting the equipment, you are freeing yourself from the storage and transportation costs and use the saved money for better purposes.
Helps You With Tax Time
The rental expense is a deductible expense from the taxed money while the capital or owned equipment is taxed on the depreciated amount throughout the estimated lifetime of these commodities.
Generally, rental investment is a flexible financial expense and can be considered as part of special costing in a project. This might also provide some businesses -depending on their industry- tax deduction.
Sharpens The Competitive Edge
There is a decades-old concept in the corporate world that it is difficult to compete with big fish. Possession of new updated and latest machinery by big companies is the biggest contributing factor to this setting.
However, the rentals now allow the smaller companies to procure the same equipment for their projects and come with better or equal quality work in lesser amounts as compared to their big competitors.
Hence, rental service is an effective source for small and medium companies to sharpen their competitive advantage and outperform big names with their quality and passionate work.
Managing a machine let alone a fleet of heavy machinery is a heavy responsibility. When you rent equipment, checking of fluids, hydraulics, spare part replacement, and other maintenance activities become the responsibility of someone else.
The handling of these activities by professionals of professional rental companies can give you a much-needed breath and make things work smoother and easy. This enables you to save a lot of your precious time and money in many cases.