(ThyBlackMan.com) It is worth thinking about renting instead of purchasing a new piece of equipment. The decision to buy or rent can have an impact on various aspects of your business such as finance, risk and opportunity. The trend of renting construction equipment has increased and it’s not surprising why. It offers many benefits for businesses, including the following.
1. No need to pay for equipment you no longer need. Some projects require specific equipment for a short period. The equipment will be idle after you buy and use it. Therefore, equipment rental might be the better option.
No need to pay for equipment you no longer need. Some projects require specific equipment for a short period. The equipment will be idle after you buy and use it. Therefore, equipment rental from Lakeside-hire.co.uk might be the better option.
2. Use up-to-date equipment. With equipment rental being competitive, companies offer newer equipment that can help increase performance. By renting, you get the chance to use up-to-date technology and comply with emission standards.
3. Reduce costs of maintaining machinery. Maintaining equipment can be costly; if you take advantage of rental contracts that include maintenance, record keeping, repairs and parts, this can offer significant savings.
4. No storage expenses. Storage costs can be expensive when the equipment is not in use. When renting, this is an issue the rental company has to face.
5. Avoid costly transport. Renting equipment is the best option when you need machinery on a project that’s far from your place of business. The cost to move the equipment could affect your profit, so it might be wiser to rent it from a local plant hire company close to the project site. A quick search for “trackhoe rental victoria tx“, for example, or a similar search using your location, should help you to find the equipment you need, at the price you require. Work within your budget, and still get the job done.
6. Explore new opportunities. If you want to seize opportunities offered by new projects that require specialized equipment you don’t have yet, renting is the best way to go. Purchasing such equipment outright may not be economically feasible, so renting gives you the chance to expand your horizons.
7. Deduct taxes directly. The cost of renting can be deducted as a business expense. On the other hand, the cost of purchase of equipment is depreciated over the life of the equipment.
8. Not a liability on your balance sheet. Rental costs are not a liability on your balance sheet; something that your accountant will be happy about. You can even stay within your borrowing power.
9. Try before you buy. By renting, you avoid the risk of investing a large amount of money in buying new equipment only to discover it’s not as efficient or useful as you originally thought.
Buying construction equipment is a good decision if you are certain that you will be using it every working day of the year. A good rule of thumb for deciding between renting or buying is to consider the usage; if the equipment will be utilized less than 60% to 70% of the time, it’ll probably be better to hire it rather than buy it outright. Find out what works best for your business, and if you opt to rent, work with a trusted plant hire Preston firm for a smooth transaction.
Staff Writer; Doug Hall
